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1. 1Call to Order - Roll Call▶ 0:00
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   Budget Discussion: Millage and Revenue Streams

   discussed

   Finance Director Crystal presented the first FY2016-17 budget work session, reviewing the budget process, preliminary revenue projections, and a proposed millage rate of 9.15 (down from 9.25). Council discussed concerns about low county property valuations (1.6% increase), pension contributions, insurance costs, and state revenue estimates. No formal action was taken; this was a discussion to gather council input.

   • direction:Council directed staff to contact the county property appraiser to better understand how taxable values are determined for New Port Richey. (none)
   • consensus:Council reviewed and gave informal input on a proposed millage rate of 9.15 mills for FY2016-17, down from 9.25. (none)

   🏢SunGard🏢Tyler Technologies👤Bernie👤Brian👤Crystal👤Debbie Manns👤Mike Wells👤Poblick👤Sniger#CIP Plan#CRA Budget#Communications Service Tax#FRS Retirement Plan#FY2016-17 Budget#Firefighter Pension Plan#Half-Cent Sales Tax#Millage Rate 9.15#Police Pension Plan#Strategic Plan#TRIM Notice

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   [00:00:15] We've only got one item on the agenda, but it's a potentially huge one. [00:00:20] So Ms. Mance, take it away. [00:00:22] It is a big discussion item this evening, Mr. Mayor. [00:00:27] The finance director has prepared a PowerPoint presentation, which [00:00:32] we'd like to go through with you. [00:00:34] It outlines the budget process, also a preview of expected revenue sources, [00:00:43] and provides an overview of the budget picture for the upcoming fiscal year. [00:00:50] And we'd also like to talk to you a little bit about a proposed millage [00:00:54] rate and get your input. [00:00:56] So with that, I'm going to turn it over to Crystal. [00:01:01] One question before we start, Ms. Mance. [00:01:04] Do you want us to wait till the end? [00:01:05] Do you want us to interject? [00:01:08] What's the format? [00:01:11] Due to the fact that I just want to make sure I don't lose my train of thought. [00:01:16] I don't want anybody else up here, I don't want to lose my train of thought. [00:01:19] I have no problem with interjection as I go along. [00:01:22] Thank you. [00:01:26] All right. [00:01:27] Good afternoon to everyone. [00:01:32] Tonight we're going to have our first budget work session. [00:01:34] We're going to go over the estimated revenues [00:01:38] and have a discussion about a proposed millage rate for the fiscal year [00:01:42] 2016 and 2017 budget. [00:01:46] As city manager Mance stated earlier, the purpose of this work session [00:01:55] is to also include a review of our budget process. [00:02:00] And it will be a high level review. [00:02:02] Let me go back here and give a brief overview of the agenda. [00:02:11] Purpose, budget process, we're also going [00:02:14] to go over the budget picture for next year, overview of revenue sources, [00:02:20] and then go over the next steps in the budget process. [00:02:26] In May, we provided budget preparation manuals and worksheets [00:02:37] to all of the departments. [00:02:39] And this began the budget process for fiscal year 17. [00:02:44] The manual included detailed information of the budget process [00:02:50] and what was to be expected throughout the process from each of the department [00:02:54] heads and their staff working with them to complete their budget. [00:02:59] We also had a kickoff meeting. [00:03:03] It was held with each department. [00:03:05] Finance staff met with each department head, [00:03:08] went over the new workbooks that were developed. [00:03:12] These workbooks or worksheets were used to go over all of the accounts [00:03:18] and expenditure requests that they will have. [00:03:21] It's used to compile all of that information. [00:03:24] So since this was new to the budget process, [00:03:27] we felt it important to meet with each department individually [00:03:30] and go over it in detail. [00:03:34] Any major changes when you went through that process? [00:03:38] Did anybody throw a tantrum, have a fit? [00:03:44] I mean, obviously, this is my fourth time through this here, [00:03:49] plus two times prior on another city manager's purview. [00:03:54] Every time you change process and you change worksheets [00:03:58] and you change, you know, information in prior year [00:04:03] and, no, that wasn't right and, yes, it was, [00:04:05] and, you know, all those things. [00:04:09] What was the outcome from the kickoff? [00:04:12] What improvements, I guess, caused action and benefits from those meetings? [00:04:17] What did those bring to the table? [00:04:20] I feel that, and any of the department heads can intervene, [00:04:25] I think that it definitely streamlined the process. [00:04:28] When I went through it initially, [00:04:32] there were some areas of improvement, [00:04:34] especially in the, there was a lot of duplication of information. [00:04:41] And so the workbook that was created by my department [00:04:47] basically compiled all of that information into one place [00:04:52] and it allowed the departments to compile their requests in one location [00:05:00] and not have to duplicate information, [00:05:02] make copies of a lot of information that was requested [00:05:05] and send it to multiple locations. [00:05:08] Everything was done in this one workbook, provided back to finance, [00:05:11] and then we were responsible for it after that point. [00:05:15] And that information's the benchmarks or the platform [00:05:20] that's going to be used to populate the Tyler technology program going forward? [00:05:27] It didn't include that because during this budget process, [00:05:32] Tyler will not have been implemented, at least the budget module of Tyler. [00:05:37] So we're still going to be using SunGuard during this budget process. [00:05:42] So next year, when we begin the budget process, [00:05:46] we have hopes to use Tyler and be able to implement it at that point. [00:05:51] But this year, most of the departments were accustomed [00:05:54] to entering in their information themselves into SunGuard [00:05:58] and then finance going in and making edits and changes. [00:06:03] This year, they entered their information into the workbooks [00:06:07] and then finance was responsible for entering the information into SunGuard. [00:06:11] I hope you're going to use this information as a way to filter out [00:06:16] the nebulous bad information so that we don't populate next year. [00:06:22] Because my wife works extensively with Tyler from a school platform [00:06:30] and she's expressed that inferior information in [00:06:35] creates bad policy moving out. [00:06:40] And then you have to go back and try to redo it and explain. [00:06:44] When you go back to redo it, it looks like you're explaining a mistake, [00:06:47] if you can follow the conversation. [00:06:51] So I'm hoping that we're using this tool and the platform, [00:06:56] along with the department heads, to filter out [00:06:59] so that we can start from one point of information. [00:07:04] Because if you ask us to go take our books that we have from the last four years, [00:07:09] we could show you a number of different areas and a number of different things [00:07:12] because we've all spent a lot of time with that. [00:07:17] And in some cases, the information that were in certain line items [00:07:22] had been commingled, it had been duplicated, [00:07:26] it had been changed out because Mr. Sniger, on our first go-around, [00:07:31] was reworking the platform for us. [00:07:35] I don't know if he's moved, the old adage is, I think he's moving the cheese [00:07:39] because he didn't want us to see where all the mouses were. [00:07:41] But at the end of the day, I just want to make sure that if you don't duplicate effort from this, [00:07:47] and then next, sometime in the spring, I'm told, well, [00:07:51] we're bogged down because we're going back. [00:07:53] It would make sense to do those along the same pathway [00:07:58] and then be able to put the right information in. [00:08:00] And that's exactly what we're doing. [00:08:02] As we go through the budget process and have to compile historical information to present to you, [00:08:08] we're going through and making sure that it is the accurate information [00:08:12] and cleaning it up in SunGuard so that when the data is converted into TILER, [00:08:16] it's already clean and accurate with what has been presented in CAFRS in past years. [00:08:23] So that is... [00:08:25] Is there an issue with SunGuard? [00:08:28] You know, we get back into this. [00:08:29] Does SunGuard talk well with TILER, or is that going to have to be a manual input? [00:08:36] It's not all manual, in my opinion. [00:08:40] And Brian could probably speak better on this. [00:08:42] I don't think they talk very well together. [00:08:45] So there is a conversion process that has to be manual to get it into the format [00:08:50] that it needs to be in to get into TILER. [00:08:55] But it's not all manual. [00:08:57] Okay. Thank you. [00:09:01] All right. [00:09:02] In June, so after that process was done and workbooks were submitted back to finance, [00:09:11] in June, we received preliminary taxable values from the county appraiser, [00:09:17] and those were used to come up with preliminary projections on property tax revenue. [00:09:26] In June, we also allow the departments to present their preliminary budget requests [00:09:31] to the city manager. [00:09:34] Ms. Manns, is there a possibility to ask Mr. Poblick if there's any way for us to question [00:09:43] or on the county appraiser's taxable values? [00:09:53] I think they're wrong. [00:09:55] I think they're very wrong. [00:09:57] When the city of Dade City goes up 2.5 and we go up 0.08, I just, you know, I don't know. [00:10:05] And it's Mr. Wells' last year, so I'd like for him to earn his money on his way out. [00:10:11] Because he's been a long time as a county commissioner, and now he's been kind of here. [00:10:14] So, you know, he'll delegate it to somebody else. [00:10:17] And he came to us a couple of years ago and gave us some song and dance here, too. [00:10:22] But I'm just telling you, I think it's, I just think it's wrong. [00:10:27] And I just want to know what the process is to raise our hand and say, [00:10:32] are we being looked at differently because we have a different structure from a taxable value basis [00:10:40] because we have a CRA that's 99% of the city of New Port Richey? [00:10:45] Okay, that's the rules. [00:10:47] I understand, but, you know, we had some major projects come on board the end of last year [00:10:53] that flowed into fiscal year this year. [00:10:56] And 0.08, I just, you know. [00:11:01] I would assume it would start with a phone call. [00:11:03] I mean, it's not hard. [00:11:04] I could call them if you want. [00:11:05] I mean. [00:11:06] Right. [00:11:08] Yes, in response to the question, I will speak to the city attorney and respond formally to the question. [00:11:16] Yeah, I mean, I'd be interested in hearing exactly what criteria determines the value. [00:11:21] I talked to a friend of mine who's a property appraiser. [00:11:24] He's not even 100% sure. [00:11:25] He just does, you know, residential properties based on comp sales. [00:11:29] And there has to be much more to it than that. [00:11:30] And I'd like to understand a little bit more about as to how those values are determined. [00:11:35] Be nice to him. [00:11:36] Nice to know. [00:11:38] And since the June 1st preliminary values, we have received an update, [00:11:43] our final taxable values from the county. [00:11:46] And there was a slightly greater increase, 1.6% compared to last year. [00:11:53] But we can definitely still reach out to them and get a better understanding of how that's calculated. [00:12:00] So the projected was how much compared to the actual? [00:12:04] The preliminary, June 1st, was 0.8% higher than last year. [00:12:10] Now it's 1.6 higher than last year is how it came back. [00:12:13] The reason I'm asking is because that directs us as a council to set policy. [00:12:21] It directs us, as we went through our strategic plan elements a couple weeks ago, [00:12:26] it sets for us benchmarks that we can establish that might, [00:12:32] if we understand the methodology, then three out of five up here, [00:12:38] because that's what wins, three to two, or all five, it has been a lot. [00:12:44] If that allows us to set our benchmarks and our strategic plan, [00:12:50] because my goal two years ago was, especially coming into this year, [00:12:54] I wanted to see that somewhere around three or four. [00:12:58] Because I believe that sets up the right conversation of the way the city's going, [00:13:05] how your residential portfolio is being enhanced. [00:13:09] And if that means, as a group, we have to look at other avenues to help improve that, [00:13:17] I think that speaks well to the overall aesthetics and the overall feel of New Port Richey. [00:13:26] And people will say, boy, they went up two, they went up three, now they're up four. [00:13:30] So when somebody comes in, they can see an appreciated value. [00:13:34] Plus, those dollars get reinvested. [00:13:36] I agree with you completely. [00:13:38] The numbers just seem way low. [00:13:40] If we can get some more information on that, that would be helpful. [00:13:45] But we do need to get the rest of the way through the presentation. [00:13:52] In July, as I mentioned before, we received the final taxable values from the county appraiser. [00:13:59] We're here today for our first work session covering estimated revenues and millage rate. [00:14:06] We will also conduct two more work sessions in July to review the individual department [00:14:12] budgets on July 19th and 26th. [00:14:18] In August, we will establish the trim notice and establish a millage rate for the notice. [00:14:27] We will also meet with the CRA board to go over the CRA budget, propose draft of budget [00:14:35] and CIP plan to city council, and propose a millage rate. [00:14:43] In September, we will approve or have the CRA board approve a budget for the CRA, conduct [00:14:51] a public hearing held on the tentative budget, and a public hearing to finalize the budget. [00:14:57] And then at the end of September, we'll distribute the adopted budget. [00:15:00] Next, we'll go over just the budget picture moving forward and go over some positives [00:15:10] and challenges for the upcoming year. [00:15:15] We definitely have seen some growth in our city and in the county as a whole. [00:15:21] Recovery is slow, but it is hopeful and gradually increasing. [00:15:26] As we mentioned already, we did receive a slight increase in our property values, and [00:15:32] we also see a trend of increase in other revenue streams for the city. [00:15:39] We've also seen significant progress in economic development, and by economic development I'm [00:15:44] referring to just the overall growth in the county, which includes New Port Richey, and [00:15:50] the region, our region of Florida as well. [00:15:53] Unemployment rate has declined and foreclosure rates have declined, so all of that contributes [00:15:58] to our future growth and development if it continues. [00:16:03] And of course, we also have continued community support and staff commitment to improve and [00:16:11] grow the city of New Port Richey. [00:16:15] Some challenges that we face. [00:16:18] The first bullet you see is increase in pension costs. [00:16:21] Now that we have our final actuarial valuations, there's an update to this. [00:16:28] It's actually going to be a slight decrease. [00:16:31] The actuary valuation reports came in at about a $40,000 decrease from what we've paid or [00:16:40] what we will pay at the end of fiscal year 16. [00:16:43] So the city's contribution to these pension plans will decline in fiscal year 17. [00:16:49] So that is actually a positive instead of a challenge. [00:16:52] Which side? [00:16:53] I'm sorry? [00:16:54] Which side? [00:16:55] Is it on? [00:16:56] I doubt if it's on the police side, but I would imagine it's probably on the FRS side. [00:17:02] But I also understood the legislature passed legislation to use different tables than they'd [00:17:10] used in the past, and so that's why everybody thought that the pension costs were going [00:17:16] to go up. [00:17:17] My specific question is, which silo of pension costs? [00:17:22] Is it for the employee base, or is it for the fire department, or is it for the police [00:17:29] department? [00:17:30] The fire department and police pension plans have both declined. [00:17:36] What the city will contribute has declined in fiscal year 17, both roughly by $40,000. [00:17:44] The employee FRS retirement plan, we will have to contribute more than we have in the [00:17:51] past as a city. [00:17:54] There's a 3.58 percent increase for regular employees and a 1.59 percent increase for [00:17:59] senior management. [00:18:00] One follow-up question, I'm sorry, I just want to make sure, because those are unfunded [00:18:06] liabilities in most cases. [00:18:08] If anybody's read the minutes from the fire department or the police pension boards and [00:18:14] all that over the last six months, is that the baseline, or is that the makeup at the [00:18:20] end of the year? [00:18:22] Because you can say it went down, and maybe it did, I don't know, I haven't gotten into [00:18:30] all the numbers, but we end up having to make, to correct the balance in the account, we [00:18:37] just made $130,000 payment. [00:18:40] So it's like, yeah, I've got my bills in order, but at the end of the year, I've got something [00:18:48] that may come because of the way it's being managed or whatever. [00:18:53] And those are the surprises that I don't want to anticipate, I don't want to see. [00:18:59] For the police and firefighter pension plans, each year we receive an annual required contribution [00:19:06] amount that the city is required to contribute. [00:19:10] And by the end of the year, and we contribute to that throughout the year, but at the end [00:19:15] of the year, if we haven't met that total amount that we're required to contribute, [00:19:20] then we have to deposit a lump sum to meet our required contribution rate. [00:19:26] In addition to that, the city has a contribution amount that they're required to contribute [00:19:34] as well, and if by the end of the year they don't meet their amount, the city has to make [00:19:41] up the difference. [00:19:43] It's not a required amount by the state, but it's, and I forget the term that they use, [00:19:50] but it's just the contribution that the city makes to the plan, but if they are unable [00:19:57] to meet the total amount that the value, that the actuary has decided would come from [00:20:04] them, then the city makes up for it. [00:20:06] So that would be the lump sum at the end of the year that we may potentially have to pay. [00:20:12] Okay, thanks. [00:20:17] We will also, we also anticipate an increase in health insurance costs and general liability [00:20:22] property and flood insurance premiums for next year. [00:20:26] Those are usually, you know, each year those usually increase, so we expect an increase in those. [00:20:34] Are we shopping, or if that's the right word for making comparative, you know, comparisons? [00:20:39] We have shopped, and what we found is that we can expect a substantial increase, and [00:20:51] Bernie, I hate to put you on the spot, but I know that we were currently shopping for [00:20:57] health insurance costs. [00:20:58] Have we gotten back, have they gotten back to us on? [00:21:04] At this point, we do not have a firm commitment on health insurance cost increase. [00:21:10] We're working very closely with a broker so that we can contain any potential increases [00:21:20] in costs by changes in plan coverages. [00:21:27] We'll know more in probably 10 days. [00:21:31] All right, moving forward, the rest of the slides will give, provide an overview of our [00:21:40] major revenue sources, beginning with property taxes. [00:21:46] What you see before you is basically a, it provides the historical trend of what our [00:21:53] property tax revenue has been since 2014. [00:22:00] Our 2016 estimated amount was $4.4 million, and we anticipate a slight increase in that [00:22:08] for 2017. [00:22:11] That increase is based on the 1.6% increase in taxable values and a proposed lower millage [00:22:21] rate for next year. [00:22:23] We know, we realize that that was something that you wanted moving forward, and so we're [00:22:31] proposing to you a lower millage rate. [00:22:34] If you move on to the next slide, you'll see that last year, last year's millage was 9.25. [00:22:43] This year's proposed millage rate will be 9.15. [00:22:53] This next slide, which you don't, you won't have in the original packet that was submitted, [00:22:59] but I wanted to provide the calculation on how we came up with the 2017 estimated revenue [00:23:08] and the impact of the lower millage rate. [00:23:11] With taxable values for New Port Richey at $509,641,328, using a proposed millage rate [00:23:22] of 9.15, we have a potential ad valorem revenue of $4,663,218. [00:23:34] We can assume a collection rate of 95% of that, and that is collected by the county. [00:23:41] If we collect 95%, the city can expect $4,430,057, which is a $20,000 increase from prior year. [00:23:52] And that's with a lower millage rate. [00:23:54] So the 1.6% increase in property values allowed us to lower the millage rate for our residents, [00:24:02] but still provide the city with, you know, without having to reduce the amount of revenue [00:24:10] that the city can use. [00:24:16] The next slide goes over state revenues. [00:24:21] In state revenues, it includes communication service taxes, state revenue sharing, mobile [00:24:27] home licenses, alcoholic beverage licenses, half-cent sales tax, rebate on municipal vehicles. [00:24:34] This is all revenue that's provided to the city from the state, either from a state-imposed [00:24:42] fee or it's a tax that's shared with local governments. [00:24:51] As of today, the state has not provided estimates. [00:24:55] They have their website. [00:24:57] They update it when they have had a chance to sit down and come up with their revenues [00:25:05] and what they're going to provide. [00:25:07] They haven't done that yet except for half-cent sales tax. [00:25:11] So they've updated it, and we can expect $990,000 from half-cent sales tax, which is an increase [00:25:19] of 11% compared to last year. [00:25:23] Sticking to that, we can expect to receive at least what we received in 2016 or slightly [00:25:30] higher of state revenues if it's along the same lines as the half-cent sales tax. [00:25:34] Do you have an idea when we might get the rest of the numbers from them? [00:25:38] It's been updated. [00:25:41] They updated the half-cent sales tax on Friday. [00:25:46] Their website does state that it could be in the next few days. [00:25:50] So I'm hoping that by the time we meet again for another work session, we'll have those [00:25:54] numbers for you. [00:25:55] Thank you. [00:25:56] And effectively, the half-cent sales tax is a penny for PASCO, correct? [00:26:01] Yes. [00:26:02] Okay. [00:26:03] Just so we're – and I understand that in the – that they were tweaking it a little [00:26:14] bit on the communications service taxes. [00:26:16] That's always been a football up there for the last few years. [00:26:21] So I don't know how – you know, it depends on what the lobbyists do for that coming forward. [00:26:29] All right, thanks. [00:26:32] So Ms. Feast-Crystal, under that revenue for state revenues, it's saying that the estimates [00:26:40] are not yet available from the state except for the half-cent sales tax. [00:26:44] So all the rest of those revenues are what we're waiting for? [00:26:47] Correct. [00:26:48] And we have no clue whether it would be more even or not less, I wouldn't think? [00:26:54] We don't, unfortunately. [00:26:55] Okay. [00:26:56] Thank you. [00:26:57] The next set of revenue or the next revenue stream is licenses and permits, which includes [00:27:08] residential rental, building permits, electric franchise fees, gas franchise fees, garbage [00:27:15] hauling franchise fees, and development revenue fees. [00:27:21] These fees, we did involve the departments that are involved with – not collecting, [00:27:27] but creating these revenue streams. [00:27:31] We had their involvement in coming up with a proposed or estimated amount for 2017. [00:27:38] And you can see that we proposed to receive $1,598,106 compared to 2016's estimated amount [00:27:51] of $1,457,517. [00:27:52] About 140K? [00:27:53] About, yes. [00:27:54] Thank you. [00:27:55] Next is charges for services, which includes zoning, magistrate, off-duty services, street [00:28:10] lighting, library, and recreation and aquatics. [00:28:15] You can see here that – and the same process was done with these. [00:28:20] If the revenue involved certain departments, we did include them in coming up with these [00:28:23] projections. [00:28:25] And for 2017, we proposed $804,289 compared to 2016's estimate of $736,339. [00:28:40] In putting those together, which categories were the biggest – why don't you tell [00:28:48] me because I don't want to guess. [00:28:50] I have an idea, but I'd like to know. [00:28:53] Recreation and aquatics and off-duty services actually provides the majority of the revenue [00:28:59] here. [00:29:00] What's off-duty services, just so I understand what that is? [00:29:02] That is – [00:29:03] It's a new term to me in the budget process. [00:29:07] We contract with several companies, one being North Bay Hospital, to provide security services [00:29:18] basically. [00:29:19] And our largest contract is with North Bay Hospital. [00:29:26] So zoning didn't see a substantial increase? [00:29:32] And just so I want to circle back, so recreation and aquatics saw an increase in revenue that [00:29:42] impacts this number. [00:29:43] It includes the majority of this revenue. [00:29:45] So it's one of the significant revenue – off-duty services, recreation – they [00:29:52] just provide the majority of this type of revenue. [00:29:55] Got you. [00:29:56] Thank you. [00:29:57] Good to know. [00:29:58] Yeah, it is. [00:30:00] The next category is fines and forfeitures, which includes court fines, red light camera [00:30:08] fines, code enforcement fines, impound lot, and you can see that there is a slight decrease [00:30:16] being proposed compared to 2016's estimated amount, which is largely due to our reduction [00:30:23] in cameras for the red light camera program. [00:30:27] Does that anticipate that that goes completely away at the end of June? [00:30:35] It does not, actually. [00:30:40] Just saying, based on conversations we had when we approved the one year addition, I [00:30:48] see somewhere between zero and no likelihood that there will be any cameras this time next [00:30:53] year. [00:30:55] I'll update to include that. [00:30:59] Which is what, $700,000 for this fiscal year, correct? [00:31:03] That's our estimate for the current fiscal year, yes. [00:31:06] After the corrections, after everything started to work, or was put back into operational, [00:31:14] everything was operational after FDOT finally got out of the way. [00:31:23] So much on the impound lot. [00:31:26] We've kicked that around. [00:31:28] We thought that was going to be a $100,000 a year endeavor to put that in place. [00:31:41] I know the Chief's been able to acquire some additional vehicles this year, the moped and [00:31:48] a few others. [00:31:49] I'm just looking to see what kind of ... The Chief's looking to figure out who he [00:31:51] can tow for $100,000. [00:31:52] Somewhere near $100,000. [00:31:53] Good. [00:31:54] That's about what we ... It's pretty consistent with what we budgeted [00:31:55] for fiscal year 16. [00:31:56] Where are the code enforcement fines? [00:32:06] Those are ... What's the value of them? [00:32:14] Last year, we budgeted $80,000. [00:32:16] I think we're a little under that currently. [00:32:20] I don't have the individual expected amounts for fiscal year 17, but it's very close to [00:32:28] what we budgeted for last year. [00:32:30] Because we are on track to meet that for fiscal year 16. [00:32:35] Revenue from that in particular. [00:32:40] We talked about doing an amnesty program this year, and I don't know where that sits at [00:32:45] this point. [00:32:47] If the revenue comes in, is it booked against the year that you put the program into place, [00:32:52] and then you just roll that in and make a decision whether that goes into reserves or [00:32:57] whether it ... I'm just ... Because we had a ... I think when you took ... I think when [00:33:04] you balanced all of it out, it was like $400,000 or $500,000 in old, outstanding code enforcement [00:33:14] claims. [00:33:17] I know that we had line items in our budget for that this year, and just want to get an [00:33:23] idea, one, where it is, and then number two, if the revenue comes in, is it reported in [00:33:29] the prior year, or is it reported when it's collected? [00:33:33] Exactly. [00:33:34] That $80,000 ... My question kind of ties into yours. [00:33:36] That $80,000, is that fines given out this year, or what we've collected on previous [00:33:41] fines, and possibly people have paid on time this year? [00:33:44] We do have a separate line, or revenue item, or line item for the amnesty program that [00:33:49] was put into place in fiscal year 16. [00:33:53] The code enforcement fines are just for current fines, our current code violations, our citations [00:33:59] that were issued and collected. [00:34:01] For those that were part of the amnesty program, we are carving those out and tracking them [00:34:08] in a separate revenue account. [00:34:11] Thank you. [00:34:14] The next revenue stream is special assessments, which includes street lights and storm water. [00:34:25] The rates for these were set in 2012 and will remain the same. [00:34:30] We currently have, since we did receive the final tax roll, we're using that to come up [00:34:37] with the individual assessments on the properties within the city. [00:34:41] That is to be updated as soon as that is done. [00:34:45] A question with regards to those, because that's the first step that we made to start [00:34:50] correcting some of our budget elements back in 2012, because these used to all roll into [00:34:55] the ad valorem side of the equation, because they hadn't raised these fees for 10 years. [00:35:03] Let's just put it out there again. [00:35:09] Because these were site specific, in looking at the street light assessment, number first, [00:35:18] and with changing out to the new LED lighting, have we significantly seen an increase in [00:35:27] operational costs? [00:35:29] And if so, should we, as a council, because I've always found people in Pasco County and [00:35:36] in cities, if you're site specific about what you're doing with the revenue you're generating, [00:35:42] and it shows a monumental upgrade, they're willing to pay for that. [00:35:51] That's the reason the first penny for Pasco, because it was segmented out and we told them [00:35:56] what we were going to spend it on. [00:35:58] Same thing here. [00:35:59] We had to make a big step that year. [00:36:02] I just want to make sure that we don't leave it there and there's an operational increase, [00:36:09] number one. [00:36:10] Number two, if we're site specific and we want to put more lights in certain areas, [00:36:15] we don't want to take it out of ad valorem, we want to make sure we take it out of the [00:36:18] fund. [00:36:20] On the stormwater side, I guess as we go through the process, if we could get a comfort level [00:36:27] that those are good and correct for the next 24 months, because it's an odd number, it's [00:36:38] 36.24. [00:36:39] It's almost like you say, let's round it up to $40, why don't you round it up to $80? [00:36:47] I just want to make sure that, and if there's things on both of those that are targeted [00:36:55] over the next three years that are going to have positive impacts to the community, [00:37:00] we can be site specific. [00:37:01] Then we can talk about the ad valorem millage rate, that's what I was talking about. [00:37:06] That's a good point, because the streetlight, it's my understanding the rental on the new [00:37:10] streetlights is a little more per light than what we were paying back in 2012 for the old [00:37:16] dark ones. [00:37:18] I will look into that and get back to you to make sure that the rates we're charging [00:37:23] can cover the operational costs. [00:37:25] Thank you. [00:37:26] Our next revenue stream is Penny for Pasco, and we are, those estimates are not yet available, [00:37:39] but should be in line with 2016 or slightly higher. [00:37:54] The next revenue stream is the ad valorem revenue for the CRA. [00:37:59] As you know, this ad valorem revenue is provided by Pasco County, and it's based on the operating [00:38:05] millage rate of the county. [00:38:08] The estimate that we're proposing is based on the fact that their millage rate will stay [00:38:15] the same. [00:38:16] They haven't finalized that rate yet, but looking historically, the rate hasn't changed, [00:38:23] so we can assume that it will stay the same until they have finalized it. [00:38:28] Based on that, the CRA can expect $719,782 for the county compared to the $657,421 of [00:38:40] last year. [00:38:41] That's just on the ad valorem side of the equation. [00:38:46] Has nothing to do with the $300,000 that they would effectively see from the sale of the [00:38:52] church property, or if the other church property were to be rolled into something else. [00:38:58] This is strictly off of the county's, off of their basis, and the revenue received there. [00:39:07] Because we turned the CRA into a debt service instrument three years ago, and we've asked [00:39:16] the question, why don't we undo that, but that's a comment for another day. [00:39:25] Because obviously, just want to make sure that in that $719, that's strictly on the [00:39:31] ad valorem assessment from the county side, right? [00:39:34] Yes, it is. [00:39:35] Okay. [00:39:36] Thank you. [00:39:37] The next slide provides information on the tax increment, which is provided to the CRA [00:39:44] by the city. [00:39:46] The estimate, or the proposed amount that you see before you, is based on the proposed [00:39:51] millage rate of 9.15. [00:39:54] And we're proposing $865,714 compared to the $811,061 of last year. [00:40:06] How is this category impacted when the bill comes due for things such as our conversation [00:40:18] later on this evening with the developer from Main Street Landings? [00:40:23] Because we have a $1.75 million check to write them at some point down the line. [00:40:29] So I know it'll show up in another place in the budget, but does it offset these dollars [00:40:40] in a couple of years when that check's written? [00:40:42] Or is it strictly a line item off the payment side? [00:40:51] It would be a line item off the payment side. [00:40:54] Okay. [00:40:55] All right. [00:40:56] Thank you. [00:41:02] Next we'll go over water and sewer services. [00:41:06] There's already a 4% increase in rates that will be incorporated or implemented for fiscal [00:41:13] year 17. [00:41:16] Using those rates, we propose, or we expect $14,616,800 for water and sewer compared to [00:41:25] the $13.9 million of last year. [00:41:28] There's also growth potential that exists within these funds, or this fund, which include [00:41:34] the expanding service areas and acquiring the small surrounding utility systems if we [00:41:41] follow through with that. [00:41:43] We're buying those, so there's going to be an impact to the enterprise fund to buy it. [00:41:52] The other is that in the process, I'd like for us to look at the peel-off that we did. [00:42:04] A couple of years ago, we needed to accelerate that for a couple of years because we wanted [00:42:08] to make sure we were balancing some budgets and some items, and would like to have that [00:42:15] conversation, what impact it would have if we drop back. [00:42:21] I think we did two one year, so I'd like to see what the positive and negative is of the peel-off. [00:42:34] That's payment in lieu of something. [00:42:38] Franchise fees, thank you. [00:42:44] Next is street improvement, which is revenue in the street improvement fund of the city. [00:42:52] Estimates are not yet available from the state. [00:42:55] It is included in those other revenues that we're waiting on and will be provided all [00:43:00] at the same time, but there is growth potential here in this fund that exists based on approving [00:43:10] the potential of approving the new street assessment methodology later on tonight. [00:43:16] We can expect an increase in revenue for this fund if that's done. [00:43:21] Here's where we're going to get down in the weeds here in the next month or so. [00:43:27] If we, and we haven't voted, we haven't discussed that, we haven't done anything with that, [00:43:33] but at some point I'm going to ask, so I'm giving you the heads up, if that methodology [00:43:40] and all those things come to play, what could that eventually allow us to do with the ad [00:43:50] valorem millage rate? [00:43:53] Because if we're collecting those dollars and implementing those, and it's over and [00:44:00] above what's in the ad valorem side, I think it's only fair that we look at, and I know [00:44:07] tonight when we talk about the millage rate, we can set it, doesn't mean that's where we're [00:44:12] going to end up, it just means you can't go any higher than that. [00:44:15] That's the whole conversation that nobody understands. [00:44:17] I think we're setting it tonight, instead of no, we're just setting the benchmark of [00:44:22] something that we can't go over. [00:44:24] We can always come in, and that's what we did last year, the last minute we came in [00:44:28] less. [00:44:29] We're not actually setting that tonight. [00:44:30] We're going to discuss it. [00:44:31] We're going to discuss it, but not set. [00:44:39] And that does cover the major revenue streams of the city, and those that I thought were [00:44:44] important enough to provide you with the historical trends and proposed amounts for fiscal year [00:44:53] 17. [00:44:55] The next slides provide you with what the next steps will be, which you already know. [00:45:00] So July 19th, we're going to meet in a work session environment and go over the department [00:45:08] budgets for the following departments. [00:45:11] Not in this particular order, but these will be held on July 19th. [00:45:16] You'll hear from technology solutions, public works, fire, city manager, and finance. [00:45:23] And then on July 26th, you'll hear from police, recreation and aquatics, development, library, [00:45:30] economic development, and human resources. [00:45:32] So let me ask a question going back to what Councilman Phillips said. [00:45:35] I just want to be sure I'm on the right track here. [00:45:38] As far as that new assessment methodology we're looking to approve, I'm going to assume [00:45:45] we're doing that because we need more funding right now. [00:45:47] So if we approve that, I don't see how we're going to be able to drop the military based [00:45:50] on that, because we're doing that because we need additional funds, correct? [00:45:54] Am I missing something? [00:45:57] Correct. [00:45:59] The street assessment will provide funding for paving that we're not currently doing. [00:46:06] So there won't be any immediate effects to the millage rate in the long term, because [00:46:11] this pavement plan will improve the streets, which will in essence improve property values. [00:46:16] And hopefully the ad alarm comes up and lets down the road. [00:46:19] But in the long term, it will affect the ad alarm millage rate. [00:46:22] How much paving are we doing out of the general budget now? [00:46:26] Any? [00:46:27] No. [00:46:28] None. [00:46:29] Okay. [00:46:30] So there is no direct impact on millage rate. [00:46:31] Not immediately. [00:46:32] I think where the Deputy Mayor was coming from was if we're setting a new methodology [00:46:38] and setting it up higher, we could take the expenses in the regular budget and put them [00:46:42] in that assessment, and that would let us drop the millage rate. [00:46:46] I was following it and hopeful, but if we're not spending any money on that. [00:46:52] It comes down to a philosophical question, though. [00:46:55] The philosophical question is you keep putting fees on people, but you keep keeping the same [00:47:00] ad valorem, and so in essence you're taking money out of two pockets. [00:47:06] You're site specific, but you're actually taking more money from your citizens. [00:47:14] So philosophically, and that's where it comes down to people's own overview and council [00:47:22] person's overview, if I set up a fee, in my mind I am being site specific with the money [00:47:33] and there will be a net impact, but also philosophically to me is I need to look at a way to make sure [00:47:40] that my ad valorem can be adjusted. [00:47:46] That's me. [00:47:47] It's not anybody else. [00:47:48] It's me, because at the end of the day, if that comes out to be $800,000 or a million, [00:47:55] you can increase that, because what people are going to say is you've charged me for [00:48:01] the last 20 years in the ad valorem, but you haven't fixed my roads. [00:48:05] Now you want to charge me a fee, but you want to keep my ad valorem, and where that comes [00:48:09] back to, it comes back to how each department percentage wise impacts the ad valorem. [00:48:16] So that's the philosophical question that I come back to, because once again, I'm solving [00:48:24] a, because every time you tried to do a road in the past, you had a lot of neighbors that [00:48:31] didn't want to pay for it in the payment plan and all that understand, but that's the reason [00:48:37] I asked the question. [00:48:38] That's the reason I posed it, because philosophically, I can't take another $800,000 out of my community [00:48:46] here without trying to balance the books. [00:48:51] That's me. [00:48:57] And that really concludes the presentation for, you know, to discuss the revenue streams. [00:49:04] We did propose a millage of 9.15, so I'm not sure if you want to discuss that further [00:49:12] or if you have any questions about it or want to discuss the maximum millage for, to set. [00:49:21] We can discuss that as well. [00:49:23] It just goes back to what Mr. Phillips said, and I guess it's how you interpret everything. [00:49:28] The ad valorem goes up, we drop the millage, great, we're dropping the millage, but people [00:49:32] are still paying the same amount of taxes. [00:49:33] So make no mistake about it, if we do approve this new assessment determination, this fee, [00:49:40] I mean, it's, I agree with you, it's not trying to hide anything from the public, it's a tax. [00:49:44] We're getting 80, whatever it's going to be, additional dollars out of you per year so [00:49:50] we can improve our roads, so I'm not trying to hide any of that. [00:49:52] That was just my point when asking the question, that just because we're, you know, we may [00:49:57] change that and if it is approved and whatever the fee assessment is for that, for the average [00:50:03] household in New Port Richey, I don't think we're going to be dropping the millage rate [00:50:06] to make up for that because it would kind of... [00:50:09] There's no direct correlation. [00:50:10] Right, there's no point to do so, but I see what you're saying as well, as far as overall, [00:50:15] you were up here complaining that our property values aren't increasing as high and as quickly [00:50:22] as we hoped they would, but then again, if we go ahead and get some money up front, start [00:50:26] fixing the roads, maybe that will contribute and then kind of make up for it on the back end. [00:50:30] I think it would definitely help, particularly in some of the neighborhoods where the roads [00:50:34] are trashed, and keep in mind, the issue that we're trying to address with discussing the [00:50:43] paving assessment as a citywide item is to get us away from just being site specific [00:50:52] and dealing with whatever the crisis du jour is. [00:50:56] Kind of like insurance, you're pulling the wrist, you're getting money from everyone [00:50:59] so everyone can hopefully benefit from it. [00:51:03] Two questions, one, are we going to see a net increase or do we have a shortfall in [00:51:13] our projections for revenue for this fiscal year? [00:51:18] That's number one. [00:51:19] Number two, because our, gosh, I lost my train of thought, I'm just trying to make [00:51:29] sure I asked the question correctly. [00:51:32] Our reserves are calculated in two ways, one, the one that you have to have a minimum on [00:51:39] is calculated off of the prior year's budget, I believe that's how it goes, and so, because [00:51:47] obviously we've always wanted to make sure we had those reserves or we were trying to [00:51:51] do something with reserves just so we wouldn't get caught on a rainy day, so just trying [00:51:58] to, in most cases, we've been able to come in with at least break even and not a big [00:52:07] loss one year to the next, so just want to make sure as we go through the budget process [00:52:13] we understand where our house is today by what we're doing there. [00:52:20] And we will meet in a future work session, I will have those numbers on fund balance [00:52:27] and reserves, I just wasn't able to provide it today because we are still going through [00:52:30] the audit of fiscal year 15 and I would have, you know, those aren't final and so my estimates [00:52:38] would, I wouldn't feel comfortable providing you with those estimates today, so, but you [00:52:44] will have them before, during a work session as part of the proposed budget. [00:52:49] I have some questions. [00:52:52] Sure, go ahead. [00:52:54] And Crystal, I'm not sure if it would be you or Lisa to answer this question, but how do [00:52:59] we track the developments that are taking place in residential properties, whether it's [00:53:08] permits for additional living space or conversion of carports to living space or conversion [00:53:16] of garages to living space. [00:53:19] Have we seen an increase in that or is there a way to? [00:53:22] Driveways are on the increase, I know that for sure. [00:53:28] I don't know how it's done in finance, but, you know, in the Navaline Sun Guard system [00:53:33] we do issue permits for specific things. [00:53:35] I don't know how that transfers to the monies that we receive in the finance module, however. [00:53:40] Well, I guess really where I'm going is, you know, I've lived in the city almost 40 years, [00:53:46] I've had three houses, we have done remodeling, some extensive, some moderate, and I would [00:53:52] go back and look at our property appraiser and they would not ever pick up necessarily [00:53:59] some of that. [00:54:00] So, when we are getting our permits from the city, how do you then translate that? [00:54:05] How does that information get to the county? [00:54:06] The county actually shows up every month and collects the data from us directly and, again, [00:54:12] what they do with it, I'm not sure, but they do collect on a monthly basis from us about [00:54:15] our permit activity. [00:54:16] That's amazing. [00:54:17] That is amazing. [00:54:18] And, as I said, I know that, you know, when years ago when we were in the insurance business, [00:54:25] you know, we knew what kinds of improvements would increase the property value of the house, [00:54:30] and yet we rarely if ever saw, and even contacted the tax collector at times to say, you know, [00:54:38] we've added a bedroom, how come it's still showing only two bedrooms or whatever? [00:54:42] And so, I'm wondering if that happens to just me, you know, multiply that by however many, [00:54:50] how often are those, you know, and some of it is moderate, but I think that overall it [00:54:58] might have a substantial impact on the values that we are not showing. [00:55:03] They were making it up by creating improvements to my property that weren't improvements and [00:55:09] raising my taxes. [00:55:10] Yeah. [00:55:11] Well, you know, I just, and I know that, again, having been in the insurance business, that [00:55:16] would be very often we would ask for the property price, or we would check those records [00:55:21] for square footage, et cetera, and oftentimes, you know, clients would say, no, no, no, I [00:55:27] have X, Y, or Z, you know, so, again, it happened too often to, you know, to not be, to not [00:55:37] have some impact on the values, especially now we're seeing just a very moderate increase, [00:55:43] so, thank you for that. [00:55:48] Any other questions or comments? [00:55:51] Crystal, I really appreciate the work you put in on putting this together. [00:55:57] Thank you. [00:55:59] So, I'll be excited to hear the rest of the numbers, so that's going to make all the difference [00:56:04] in the world. [00:56:05] The other thing I don't think we finished the conversation on is what we, you wanted [00:56:12] us to throw the ball around a little bit on what the ad valorem, we're at 2.9.25 today, [00:56:22] because, you know, we're going to have to bring something back to us. [00:56:27] I mean, you know, anybody got any thoughts, because, you know, obviously, you could make [00:56:35] it 10, because you're never going to, you're not going to prove that, but you could start [00:56:40] there and, you know, make it look like they came in and got it under, under nine, man, [00:56:45] look at them this year. [00:56:46] They really, you know, you could play that political game if you wanted to, but 9.25, [00:56:52] you know, same revenues up for 20 grand on the one side, if we were at 9.15, so, you [00:57:01] know, I, mine would be having the information we have today without any more of the moving [00:57:08] parts that are there, you know, you know, preliminary 9.2 as a, as a starting place, [00:57:19] because we don't know what else, we don't know what, I guess we don't know what we don't [00:57:23] know tonight, and in essence, it all also comes back to a couple of the other things [00:57:30] that are on upcoming agendas, so, you know, we obviously know we need to operate the city [00:57:37] on the revenues that we have, so. [00:57:39] My feeling is any, any decrease in the millage rate is nice, but we need the rest of the [00:57:46] numbers first before we can really specify. [00:57:48] Yeah, I think it's a little, with so many question marks there, it would, you know. [00:57:54] I don't want to box us into a corner. [00:57:55] I don't, but I also want to say that I really would not want, I would definitely like to [00:58:00] see us move that, that millage rate down, but at the same time, I would not necessarily, [00:58:06] and I'm anticipating that we will be able to do that because we're going to see upticks [00:58:11] in these other places that the question mark is, but I would not, not necessarily then [00:58:17] want to increase those assessments because, you know, then there's not the, you know, [00:58:23] then it's, you know, what have we done? [00:58:26] I would like to say that if we can maintain the assessments at the values that they are [00:58:32] and decrease the millage rate, I mean, that would be the ideal, but again, I think we're [00:58:39] too premature with that knowing what all of those question marks are, and if I'm not mistaken, [00:58:43] it was pretty late in the game, a couple of years, where the county came back even to [00:58:48] tell us. [00:58:49] I mean, it was practically the night that we were getting ready to do what we were doing, [00:58:52] and they changed the figures or came back, so. [00:58:57] And unfortunately, you know, those question marks are related to the state revenue streams, [00:59:02] and so, and it's, it was out of my control, and I was hoping that even today, I checked [00:59:08] the website, hoping that, you know, I had those numbers to update you with tonight, [00:59:12] but they just weren't. [00:59:13] Yeah, and I was not criticizing you. [00:59:14] I know what, I know from whence that is coming, so yeah, it just, but it's the reality that [00:59:18] we have to deal with. [00:59:19] We have some specific expense numbers or expense information that we'd like to have. [00:59:25] I'm just going to get mine to Mrs. Manns, because I, you know, obviously, expense, revenue, [00:59:34] those things, that's number one, but number two is wanting to, it was pretty clear last [00:59:43] couple of meetings, people like the service levels that we provide, and if we're not there [00:59:48] on a monthly basis, we get criticized, you know, and too bad if weather or God gets in [00:59:59] the way. [01:00:00] We just need to be there, and it's an inalienable right that we've given them, and those expenses [01:00:09] don't go down, and the recycling and all those. [01:00:12] Are there any other potential revenue? [01:00:17] We talked about strategic planning, but are there any specific other revenue items that [01:00:25] we're anticipating? [01:00:28] At this point, we're not expecting any additional revenue sources. [01:00:31] Not in the next 12 months at least, right? [01:00:34] And I guess we need to take the, I guess we need to, I don't want to use a, it appears [01:00:41] that we need to know where those, the red light camera number is, and a couple of others [01:00:49] coming into this year, so that we anticipate what's going to happen going 17 to 18. [01:00:57] Because that is, that's a substantial amount of money, and it, understanding where it's [01:01:05] going to be, it can't be absorbed, but I mean, you know, what's going to offset that? [01:01:12] Even part of 2016's budget as well, I mean if we were to- [01:01:15] Yeah, which is three months. [01:01:16] Three months, but 700,000, you break that down monthly, and you know, it's a chunk. [01:01:22] It is. [01:01:23] And with that, we just need to make sure, you know, what, how that impacts service personnel, [01:01:31] the whole nine yards, so you know, so make sure, I know it's on the record that we discussed [01:01:37] it, but you know, because we only, it was only approved for another year, so. [01:01:45] Also, I know that in years past, senior manager, I'm not sure, Ms. Manns, but I know that we've [01:01:52] asked the departments to come back with a, you know, X amount of percentage less than [01:01:56] last year. [01:01:57] How, what was the approach this year? [01:01:59] Just like, what is it you need, what is it you want, or what was the- [01:02:02] The direction that was provided to the department heads was that they were to present budgets [01:02:08] to us with a no more than 2% increase over last year's spending levels. [01:02:15] Any other questions? [01:02:20] Hearing none, entertain a motion we adjourn this for-

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3. 3Adjournment