On the agenda

1. 1Call to Order – Roll Call▶ 0:00
2. 4.a

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   First Public Hearing - FY2017-2018 Operating Budget & Capital Improvement Program

   approved

   Council held the first public hearing on the FY2017-2018 operating budget and Capital Improvement Program. Staff (Ms. Manns) presented a proposed millage of 8.995 mills, a general fund budget of $21,448,550, and a CIP budget of $8,891,000. With no public comment, council tentatively adopted the millage rate (Resolution 2017-29) and the tentative budget (Resolution 2017-28), with several members signaling intent to push for a lower millage at the second hearing.

   • motion:Tentatively adopt millage rate of 8.995 mills for FY2017-2018 (Resolution 2017-29), with opportunity to reduce at September 19 hearing. (passed)
   • motion:Tentatively adopt the FY2017-2018 budget and Capital Improvement Program (Resolution 2017-28). (passed)

   🏢Florida League of Cities👤Bill👤Councilman Davis👤Councilman Phillips👤Mr. Driscoll👤Ms. Feist👤Ms. Manns#CRA charrette#Capital Improvement Program#FY2017-2018 Operating Budget#Homestead Exemption#Pavement Management Plan#Penny for Pasco#Resolution 2017-28#Resolution 2017-29#TRIM notice

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   [00:00:20] I believe the only item we've got on the agenda is the public hearing on the budget. [00:00:24] Ms. Manz, would you like to take it away? [00:00:25] Sure, I'd be glad to Mr. Mayor. [00:00:29] We conducted four work sessions on the proposed fiscal year 17-18 operating budget and capital [00:00:37] improvement program. [00:00:39] In large part, the objectives of the budget are to preserve the current level of service [00:00:45] along with little growth in revenue while making progress towards the collective goals [00:00:52] of the council in terms of implementing the city's long-range plans. [00:00:58] Some assumptions of the budget include being conservative but providing a realistic projection [00:01:05] of revenue and expenses, increases in property tax values, maintaining a targeted fund balance [00:01:15] to preserve the financial integrity of the city, annual review of all significant fees [00:01:22] for revenue adjustments. [00:01:25] We are proposing to you a wage adjustment in the percent of 2 for all non-union and [00:01:34] union employees of the city with the exception of department heads. [00:01:39] Our employee benefits are proposed at a 3% increase. [00:01:46] We are proposing a reduction in millage to 8.995 mills, which aggregates to a budget [00:01:54] in the amount of $21,448,550 for the city's general fund. [00:02:02] The capital improvement budget is $8,891,000 and we are prepared to accept comments from [00:02:13] the public. [00:02:15] At this time, the directives that have been provided to us by the city council are already [00:02:24] being tended to and before we hold our second public hearing on the budget, which is scheduled [00:02:30] to be conducted on September 19th, those changes to the budget will have been made, along with [00:02:38] some others to bring the budget into line with proposed expenditures. [00:02:44] Very good. [00:02:45] Mr. Driscoll, do you need to read something before I open this up for public comment? [00:02:50] No, that's all right. [00:02:51] Let me get that again. [00:02:52] This is for 2017-29, a resolution of the city of New Port Richey, Pasco County, Florida, [00:02:56] adopting the tentative levying of ad valorem taxes for all non-exempt real and personal [00:03:00] property in New Port Richey, Pasco County, Florida, for fiscal year 2017-2018, providing [00:03:07] for an effective date. [00:03:09] Very good. [00:03:12] This is a public hearing and public comment would be appropriate at this time. [00:03:17] If anyone would like to comment on the proposed budget, please come on down. [00:03:27] Seeing no one coming forward, I will bring it back to council. [00:03:32] Do we have any other discussion or comments that need to be made before we? [00:03:39] No, Mr. Mayor. [00:03:43] Thank you. [00:03:47] City and gentlemen? [00:03:49] Previously in budget conversations and at the time we were doing this, we would set [00:03:56] our millage and then we would hear from our county as to what monies we're going to [00:04:03] have. [00:04:04] Has all of that transpired already and we're now, this is the final determination. [00:04:10] If I'm understanding the question correctly, the taxable values have been reported to the [00:04:18] city at this time and we are basing our budget on the numbers that were provided to us by [00:04:24] the county. [00:04:26] Any other questions for staff? [00:04:38] Seeing no questions, we'd entertain a motion. [00:04:40] Move to adjourn. [00:04:42] There's a public comment, what are we doing here? [00:04:49] Maybe I'm missing something, but aren't we going to address the budget at a later date? [00:04:56] You have to approve a millage and a budget at this meeting, so you really can't adjourn. [00:05:02] This is a noticed public meeting that's provided from the trim notice. [00:05:07] Mr. Mayor, can I open this floor back up? [00:05:12] If you would, please. [00:05:14] Just, obviously, we don't have anybody from the public here, which is a little disappointing [00:05:24] because this is a lot of money. [00:05:26] Only $1 million and then we have $8 million in CIP, we've got water and sewer fund, we've [00:05:35] got storm water, we've got street lights, we have paving management, I don't know what [00:05:44] we have to do to engage the public anymore, but the way you set it up, Ms. Manns, I understand [00:05:56] is that we vote to accept this tonight, we bring whatever changes to the table, we meet [00:06:04] for our second on the 19th, and then we have to vote on the 25th on the final. [00:06:11] The 25th is the final, yes. [00:06:13] So we have another three weeks to kind of go through, offer suggestions, offer implementation [00:06:23] items, obviously I'd hope to see the public here tonight so that they could bring some [00:06:32] key questions to the forefront, but that doesn't appear it's going to happen, and [00:06:42] I still have a great deal of items within this budget that dovetail back into the two [00:06:50] public hearings we recently had, and analyzing all the numbers, which is unfortunately my [00:06:58] trait, it's a character flaw anymore, and because there are some things that are in [00:07:08] the general fund side, there are some things in the CAP CIP plan that I see in this budget, [00:07:15] I don't see that they completely line up with what I saw in the CIP plan we got presented [00:07:21] a couple weeks ago, but to be perfectly honest with you, I just have not had the overall [00:07:27] time to walk through each area, because obviously we've increased our assessment side of the [00:07:41] city operations moving into this next fiscal year, with our pavement management plan, and [00:07:48] the two additional add-ons that we had for water and sewer, mainly in the position of [00:07:57] previous properties that weren't being assessed, that are now being assessed, and I know last [00:08:04] week at that meeting I asked to get what that additional revenue increase, or that revenue [00:08:12] amount was, because I'm trying to look at this and take into effect our CRA charrette [00:08:21] that we had recently, where it's been pointed out to us that our ad valorem rate is too [00:08:30] high, or too high for economic development, and so with that, I'm trying to find a way [00:08:40] to look at the budget, along with the assessments, to see if there's a way that we could significantly [00:08:47] reduce that millage rate down. I think 8, 9, 9, 9, 5, with the other things that we've [00:08:57] done in the last couple of weeks, is still too high, but I'm not in a position tonight [00:09:03] to point out specifics until I finish doing the rest of my homework, I guess, Mr. Mayor, [00:09:16] because there's some different revenue streams that affect not only the general fund, but [00:09:22] also Penny for Pasco, CIP, and to be honest with you, I just don't have those in a form [00:09:28] that I would like to present to my colleagues, to whatever avenue that would be, and to staff. [00:09:36] I'd like to talk to staff about it before I would bring it to council, but at the moment [00:09:43] I still think that 8, 9, 9, 5, with the other things we've done recently, that ad valorem [00:09:50] rate is still above where we ought to be when we finish this process on September the 25th. [00:10:00] Thank you, Mr. Mayor. [00:10:01] Thank you. [00:10:02] Councilman Davis. [00:10:03] I'd just like to add, I was at the League of Cities, and there was a big emphasis on [00:10:11] voting down the new Homestead Exemption, and if we don't vote the new Homestead Exemption [00:10:16] down, then we're not going to be able to reach our budget numbers that we need to reach to [00:10:22] be able to pay for this budget. [00:10:24] So addressing that, I think, is a big factor, and I think it should be a part of us as council [00:10:31] members to incorporate some kind of program where we identify the problem and what a result [00:10:40] everybody thinks they're going to get lower taxes if they bring down the ad valorem. [00:10:45] If we bring down the ad valorem, we're still going to have to pay the budget as it sits, [00:10:48] and we can't increase the ad valorem sitting at 9 right now. [00:10:52] So what are you going to do? [00:10:54] You're going to have more services charged, much like the pavement, much like the storm [00:10:59] water and the lights. [00:11:00] You're going to start asking that. [00:11:01] When you start asking that, it's going to raise the rents of the tenants that are renting, [00:11:08] and really how many properties out there, half of them are rentals. [00:11:15] So everybody's rent's going to go up to pay for this. [00:11:18] And so I'm, along with Bill, we've got to get our millage down a big number, not just [00:11:24] points. [00:11:25] I actually asked for somewhere in the eighths last year, and we didn't make the eighths. [00:11:31] And one of the things I always said, do you know how much gas is right now? [00:11:35] It's 259. [00:11:37] No, it's 259.99, or 259.9. [00:11:41] So if we had last year gone to 8.9, we'd at least had the number eight to start it out [00:11:45] with. [00:11:46] Well, now we're going to what I thought we might go to last year. [00:11:49] We need to really sharpen our pencils. [00:11:52] I'm sorry that it's going to have to affect different departments, but everybody's going [00:11:55] to have to step up, and we've got to do something serious. [00:11:58] We've got to have an aggressive program to help the League of Cities with this new homestead [00:12:07] exemption. [00:12:08] Mr. Mayor, can I ask Councilman Davis a question, since he was there? [00:12:14] Is it the position that they're going to try to add in another level of homestead? [00:12:22] Right now you get your first 25 free, you've got to pay on the next 25, and then you get [00:12:30] the next 25 with no ad valorem charges. [00:12:37] I haven't stayed in touch with that, but I'm assuming that they want to increase those, [00:12:42] or they're going to add another level, and then there's a year or two before that goes [00:12:47] into effect? [00:12:48] Yeah, it's about a year. [00:12:49] I think it's a year. [00:12:50] So it'll be 19? [00:12:52] Yeah, but if we're not backing off now, we're not going to be ready, and we're going to [00:12:58] have to come in with services, tax on services, more tax on services, and it's going to increase [00:13:04] the rentals, which is 50% of our debt. [00:13:08] You're seeing it because of the property value, our medium price value that we have within [00:13:14] the city, and that the growth in that isn't large enough that it would offset any kind [00:13:19] of a... [00:13:20] So if they did first, third... [00:13:24] It's really not going to affect 50% of the... [00:13:27] Yeah, with our manufactured half-mole. [00:13:31] Well, no, not... [00:13:32] No, the 50% of our... [00:13:34] It's not going to affect 50% of our housing stock because it's rental, so it's not going [00:13:41] to really help us. [00:13:43] We're going to have to... [00:13:44] Us or whoever's down the road, a couple years down the road, they're going to have to come [00:13:47] in and start charging services. [00:13:49] This is a shell game so that some of our legislators can pretend that they've actually [00:13:54] cut taxes instead of dealing with their own budget. [00:13:57] But the League of Cities really wants us to come in aggressively, let our residents know [00:14:03] what's going on. [00:14:04] I think we need to. [00:14:05] It's a shell game because, as you just pointed out, what will happen is that a small number [00:14:12] of homeowners will get a really sweet additional tax cut. [00:14:19] However, that's going to wind up getting paid for by every single person that is not homestead. [00:14:26] That means the businesses that we're trying to attract into the town, and that means all [00:14:29] of the rentals are going to get screwed by basically this shell game that somebody in [00:14:36] Tallahassee came up with. [00:14:38] Somebody that's fluid. [00:14:40] And the fluid people will be getting a break. [00:14:43] If I could ask a question, isn't there a timetable for us to be addressing this? [00:14:49] So if we don't vote on this this evening, or if we... [00:14:54] I'm not sure what our options are actually. [00:14:57] But you know... [00:15:00] If we were to set the millage tonight at this rate, we can't come down, and if we don't, is my understanding, and if we don't address this evening, is there still time between now and September 19th to address this? [00:15:16] Mr. Driscoll, am I correct that's exactly the reverse of what the case is? [00:15:20] We need to set the millage now. [00:15:21] We can reduce it going forward. [00:15:23] We just can't bump it back up. [00:15:25] That is absolutely correct. [00:15:26] Yes. [00:15:27] Okay, thank you. [00:15:28] All the way up to the night of the 25th, when we vote on the final budget, we could go, not that I'm proposing this on anybody's behalf, but we could go line item by line item and take out and then establish that millage rate on the 25th, and that's what's in stone for the next year until we get to that point. [00:15:51] That's correct. [00:15:52] We get to take our best and last and final shots. [00:15:59] I do believe that Ms. Feist provided me, not personally, but she provided some information by where if we're at 8.9 today, if we wanted to get to 8 or 7.5 or 7, there's some quantifiable numbers to that on the millage rate side. [00:16:28] Ms. Manns, if you'd rather provide that in your manager report, or if the finance director could provide those numbers, that would at least give some benchmarks for all of us here tonight when looking at the budget. [00:16:48] This is just on the ad valorem side. [00:16:50] It has nothing to do with penny for PASCO or any of the assessment sides. [00:16:54] It only has to do with the ad valorem side of the equation, which is the percentage that's obviously charged against the properties. [00:17:03] If we could, that would be very helpful, I think, for all of us. [00:17:07] Mr. Driscoll, am I correct? [00:17:08] We need to have two separate motions, one setting the millage rate, which we can then reduce at the next public hearing, and then the second one adopting the budget, which, again, we can revisit and delete stuff out of at the second. [00:17:26] Yes. [00:17:27] What you're doing tonight is you're tentatively approving a millage rate and tentatively adopting a budget. [00:17:33] They do have to be separate votes. [00:17:34] As you correctly pointed out, Mr. Mayor, you cannot increase the millage at the final budget hearing. [00:17:41] You can only reduce it or adopt it at the same level. [00:17:45] So, yes, you'd have to have two votes, and we've read one resolution. [00:17:49] There will be another after this vote is taken, but you do need to adopt a tentative millage rate and a tentative budget. [00:17:55] That being said, I would entertain a motion to adopt a millage rate. [00:18:00] I'll make the motion to adopt the millage rate at the 8.995 with the caveat that we will be, have the opportunity to discuss this further and perhaps reduce it at September 19th. [00:18:18] Second. [00:18:19] Second. [00:18:20] To the maker, any? [00:18:21] No, thank you. [00:18:22] Appreciate your. [00:18:23] Second. [00:18:24] I have no comments on the budget right now. [00:18:25] Thank you. [00:18:26] Thank you. [00:18:27] Councilman Davis? [00:18:29] Councilman Phillips? [00:18:31] No, sir, not at this time. [00:18:34] Yeah, I'd love to see us trim this down a little bit as well. [00:18:40] I do have the actual numbers, but we can talk about them later. [00:18:46] As we have a chance to see how sharp pencils can be. [00:18:52] I would be reluctant to cut it any further than that tonight, particularly after hearing what I heard a few minutes ago. [00:19:03] We may have far bigger things to worry about than a millage rate. [00:19:09] So there's no further discussion. [00:19:12] All those in favor, please signify by saying aye. [00:19:14] Aye. [00:19:15] Opposed, like sign. [00:19:17] We have communications listed. [00:19:19] Do you want to do it now or after your regular meetings? [00:19:21] Oh, I'm sorry. [00:19:22] We still need to do the second. [00:19:23] Second. [00:19:24] Thank you for catching me. [00:19:25] We have a second one. [00:19:26] Would you like to read that, please? [00:19:27] Yes, Mr. Mayor. [00:19:28] Resolution number 2017-28, a resolution of the city of New Port Richey of Pasco County, Florida, [00:19:33] adopting the tentative budget for fiscal year 2017-2018 in the capital improvement program for fiscal year 2017-2018, [00:19:42] providing for an effective date. [00:19:44] Thank you. [00:19:45] I will open this up for public comment if anybody wishes to address us on the budget. [00:19:50] Seeing no one come forward, bring it back to council. [00:19:54] Move for approval. [00:19:55] We have a motion to approve. [00:19:57] Second. [00:19:58] Second to the maker. [00:19:59] Nothing. [00:20:00] Nothing further at this time. [00:20:01] Councilwoman? [00:20:02] No, nothing further. [00:20:03] Councilman Phillips? [00:20:04] Not now. [00:20:07] In that case, all those in favor, please signify by saying aye. [00:20:10] Aye. [00:20:11] Opposed, like sign.

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3. 6Adjournment▶ 20:13
4. 2

   Pledge of Allegiance

   Pledge of Allegiance.
5. 3

   Moment of Silence

   Moment of Silence.
6. 5Communications