BCC Minutes 09/21/1987 B
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Naples, Florida, September 21, 1987
LET IT BE REMEMBERED, that the Board of County Commissioners in
and ror the County of Collier, and also acting as the Board of Zoning
Apppals and as the governing board(s) of such special districts as
have been created according to law and having conducted business
herein, met on this date at 7:00 P.M. in BUDGET SESSION in Building
"F" of the Government Center, East Naples, florida, with the
following members presc~t:
CHAIRMAN: Max A. Hasse, Jr.
VICE-CHAIRMAN: Arnold Lee Glass
John A. Pistor
Burt L. Saunders
Anne Goodnight
ALSO PRESENT: Maureen Kenyon, Deputy Clerk; Neil Dorrill, County
Manager; Ken Cuyler, Councy Attorney; Lori Zalka, Budget Director; Tom
Crandall, Utilities Administrator; George Archibald, Public Works'
Administrator; Kevin O'Donnell, Public Services Administrator; David
Pettrow, Community Development Administrator; Cliff Crawford, Parks &
Recreation Director; Jennifer Pike and Stan Litsinger, Budget
Analysts; and Nancy Israelson, Administrative Assistant to the Board.
eOOI( 107 p~~r 547
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SEPTEMBER 21, 1987
AFPIDAVITS OP PUBLIC HEARINGS PILED WITH THE CLERK
The following Affidavits of Publication were filed with the Clerk,
all having been published in the Naples Daily News on September 18,
H87.
Notice of Tax Increase
Notice of Budget Summary hearing
Notice of Public Hearing on Federal Revenue Sharing
RESOLUTION 87-215 AMENDING FY 1987-88 TENTATIVE BUDGET¡ RESOLUTION
87-216 ADOPTING PY 1987-88 FINAL BUDGET¡ AND RESOLUTION 87-217
ADOPTING PY 1987-88 MILLAGE RATES TO BE LEVIED - ADOPTED. (UNANIMOUS).
Budget Director Zalka stated that the purpose of this meeting is
to hear comments about the budget and taxes, and to explain the
reasons for the tax increase. She indicated that the tax increase on
the County-wide level is primarily because of capital outlay, adding
that there is a reserve of approximately $2.2 million in the County-
wide portion of the budget which is responsible for 5% of the 12-1/2%
tax increase. She noted that this money will be used to build parks,
libraries, roads, bridges, etc. which are capital infrastructure and
based on the Growth Management Plan. She noted that there is also a
4-1/2% tax increase as a result of new positions; deputies and admi-
nistrative positions in the Sheriff's Department, which generates
approximately $1.5 million. She reported that the remaining 3% tax
increase is for positions in the County Manager agency for Parks &
Recreation, Public Works, and Emergency Services, adding that the
5% for Capital; the 4-1/2% for the Sheriff; and the 3% for County
Manager is a total of 12-1/2% which is the tax increase for the Count.y-
eO~1( 107 rS'·f 549
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aOOK 107 PA'.! 550
SEPTEMBER 21, 1987
wide taxes which is $12.2 million. She stated that there is also
unincorporated area-wide taxes and the reason for the 27.6% increase
in this area is for capital outlay, such as Water Management drainRge
projects, Parks and Recreation projects, as well as a reserve for
future capital outlay for the Growth Management Plan. She stated that
the entire Collier County budget is $192 million, a 34% increase over
the prior year, which includes all the constitutional officers, all the
funds, and all the enterprise fUflds such as utilities and solid waste
which does not use property taxes but charges fees to the customers.
She stated that there is also all capital projects included in the
$192 million budget such as sewer lines, courtroom buildings, etc.
She indicated that approximately 20% of the County revenues of the
$l92 million budget is from property taxes. She noted that based on
the notice of property taxes that was sent out, there was an 18-1/2%
increase County-wide, adding that since that time as the Board of
County Commissioners has reviewed the budget, they have made cuts in
the plan and budget as it now stands will be a 12-1/2% tax increase.
She stated that the reason the tax increase was reduced from 18-1/2%
tp 12-1/2% is because of a cut of $3 million in reserves for future
capital outlay based on the assumption that the County will use other
revenue sources such as sales tax for part of the Growth Management
Plan. She noted that the Capital Reserve also effects the Unincor-
porated Area taxes which was the MST section and was originally based
on a 45% increase which has been reduced to the 27.6% increase. She
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SEPTEMBER 21, 1987
stated t~at there were also some changes in the small districts,
adding that Ochopee fire Control District was originally at 4 mills
and is now down to 3 mills and Sabal Palm Road Extension was at 17.4
mills and is now down to 8.5 mills. She noted that she would now like
to open the meeting to the public for comments.
Mr. ~eonard Grabinski stated that the budget is being made for the
upper c13ss people in Collier County and not for the middle class tax-
payers. He noted that the rich can afford the taxes; the poor do not
care because they are subsidized; but the middle class are the ones
that bear the brunt. He noted that if the taxes keep going up, there
will be no middle class. He noted that the Sheriff's budget is too
high and the middle class cannot afford his budget.
Commissioner Hasse notp.d that he is conscious of the dollar and
the Sheriff's Department is one of the most valuable services needed
in Collier County and if the Sheriff was nceded and not available,
then there would be problems.
Mr. Grabinski stated that he is a strong supporter of a well
equipped police department and he is a retired police officer. He
noted that they all ask for more than' what is needed.
Commissioner Saunders stated that it was very difficult to eva-
luate the Sheriff's Department and the Commission gave the Sheriff
what he was asking for, noting that the Sheriff is the one that has to
answer to the t&xpayers at the next election.
Mr. Herb Wendle stated that he would like to see the government
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eOOK 107 p~'.: 551
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SEPTEMBER 21, 1987
run as a business. He noted that his assessment went up 6% he and has
no objection to that but would like to know what the total assessments
in Collier County are on alJ properties. He noted that ~e checked
into this and was told that the total amount in 1986 was
$7,733,666,000 and in 1987 il was $8,472,000,531 which is an increase
of about $700 million in one year, adding that the County is planning
to spend more money than what is coming in. He noted that this is no~
re~sonable and the budget should be cut.
Commissioner Saunders stated that the 12.5% increase is an
increase in total dollars raised from ad valorem taxes which takes
into account the $700 millIon in assessment.
B~dget Director Zalka stated that the tax value goes up because o~
new construction, which means that this is another house that needs
services like roads and sewers, but a lot of the increase is in
assessed value and when that happens the millage rate is rolled back
and no extra money is received because of that. She noted that last
year the millage rate on a County-wide basis was 4.J mills and because
of rolling back, if taxes were not raised, that millage rate would be
3~9 mills. She noted that when there is a 12-1/2% increase it is
based on the rollback rate which means that the money from
reassessments have already been taken out. She noted that some taxes
may go up, but other taxes may go down because the rate goes down when
the whole value goes up.
Mr. Wendle stated that he was amazed when Lee County and Collier
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SEPTEMBER 21, 1987
County Sheriff's departments werc compared, adding that Collier
County's budget is very high.
Commissioner Class stated that there are four major police depart-
ments in Lee County and if all their budgets were added together it
would be much higher than Collier County. He noted that the Sheriff
in Lee County does not have the same type of protection problems that
the Sheriff in Collier County has. He noted that with all the
Sheriff's departments in Lee County, their budget totals over $42
million.
County Manager Dorril1 stated that last year the County-wide
millage rate was about 4.1 mills and the County is required to pUblish
the rollback rate or what the rate would be this year if there was no
increase in taxes and only the increase in assessed value was used.
He noted that the rollback rate this year was 3.9"mills and if there
was not any tax increase, the rate this year would have been 3.9 mills
but with the rate increase it brings it to about 4.5 mills. He noted
that this information has been published and is a function of the tax
notice, noting that this is called the Truth in Millage Law which was
adopted in 1982.
Budget Director Zalka stated that the" County-wide taxes are going
up 12-l/2%~- adding that if the County was able to keep all the money
as a result of the reassessmen t, then the County would only need a
7.4% tax increase, adding that 12-l/2% increase is being advertised
because not all the money is being kept from the reassessment.
eool( 107 p~'.! 553
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107 P~(.! 554
SEPTEMBER 21, 1987
Mr. Richard Hydeman staLed thðt he hðs also had an increase in
assessment as well as a tax increase. He noted that his asse~sment
went up 14.3% and then there is the 12.5% increase in taxes which
ðmounts to a 26.8% increase overall. He indicated that this is dif-
ficult for people that are retired. He noted that there is a gap in
this budget between what is nice and what is desirable and what the
taxpayers can afford.
Mr. Anthony Maiale stated that this County is moving at too rapid
of a pace and if the growth is the major problem, it should be slowed
down. He noted that Collier County is getting apathetic. He
questioned the figure on Page C-44 which shows $94,800 to repay a
$73,000 loan for engineering fees and questioned the discrepancy bet-
ween these figures?
Budget Director Zalka stated that this is to pay back the loan as
well all the intcrest and thc paymcnt to thc Property Appraiser and the
Tax Collector for collecting the taxes and since there is a 4%
discount on the bill, only about 95' is collected of everything that
is levied, which means thaL 5% more has to be levied for the discounts
and un(:ollectables.
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Co~nty Manager Dorrill staled that thi. is the first year that the
Naples Park area drainage has been in existence and the project was
initiated last year when a commerical loan was taken out in order to
get the project started. He noted that thc project is underway and
the ability to collect money from property owners will not begin until
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this October, so part of thc rcason for this money is the phase-in of
the project costs that wcre actually incurred this year and will con-
tinue to be incurred next year until the design is completed and
brought back to the Board of County Commissioners to decide if there
will be a special assessment project. He noted that there is an obli-
gation to repay the loan that was taken out this year so that the pro-
ject could proceed before the County actually had the ability to
collect a tax in the year following any action that is incurred to
create these special districts.
Mr. John Meek stated that there should be more sales tax so that
people that visit here could pay for it and then the taxes could be
rolled back.
Comrrissioner Saunders indicated that the Board of County
Commissioners is constrained by the State Legislature as to which
types of taxes can be levied. He noted that in the last session, they
authorized a one cent-sales tax if approved by the voters, but the
County cannot put taxes on anything withou:; authorization from the
State.
Mr. Meek indicated that the property owners are the ones carrying
the burden and there should be additional sales taxes or gasoline
taxes and he would have no objection to that.
Commissioner Saunders stated that Collier County is at the whim of
the State Legislature and the only tax that Collier County can use is
the ad valorem tax without permission from the Stale. He noted that
BOOK 107 PAr.r 555
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SEPTEMBER 21, 1987
all counties have the right to go up to 10 mills and Collier County
hes kept theirs low and has suffered for it because the revenue
sharing formula is based on tax effort. He noted that g,s tax and
sales tax can only be increased if the State allows it. He noted that
if people want additional gaR tax or sales tax, they can write to the
Legislature and ask them to give the County permission to do this.
He noted that when the Legislature gave the County the option to have
a referendum for the optional sales tax, they put a proviso on it that
the sales tax could only be used for growth management or capital
improvements and could in no way be used to roll back ad valorem
taxes.
Mr. Meek questioned if the one cent sales tax is passed, would it
have any effort on hOlding the real estate taxes where they are, to
which Commissioner Pistor replied affirmatively. He noted that if the
County does not get the sales tax, then the ad valorem taxes will have,
to be raised. He indicated that everyone that is interested can writE,
to their local representatives of the Legislature.
Budget Director Zalka stated that another reason for this public
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hearing is to hear comments on the use of Federal Revenue Sharing and
how it relates to the entire budget, adding that the County no longer
gets any new revenue sharing dollars from the Federal Government, but
there is approximatcly $900,000 left from twc years ago that is being
used in the Capital Projects Fund for building of the courthouse
complex and other facilities.
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Mr. John Smith indicated that he understood Commissioner Pistor's
assessment went up 22% and questioned if he did anything to his pro-
perty to merit this increase, to which Commissioner Pistor replied
negatively, adding that he has asked that this matter be checked into.
County Manager Dorrill thanked the Commission for their coopera-
tion and diligence that they have shown this year.
Commissioner Hasse complimented the County Manager and his staff
on the fine job that they have done.
attending the meetings.
Budget Director Zalka stated that the Commission needs to decide
He also thanked the public for
what amendments to make to the tentative budget, adding that the
information that is contained in the "blue book" reflects all the
amendments that have been made to date. She noted that there is also
one additional amendm~nt, adding that the Supervisor of Elections'
budget was increased by $88,ìOO to hold a apecial election on October
27, 1987. She noted thDt if there is no special election on that
date, those funds will not be needed and it would be appropriate to
take that money out of her budget and put it back into the General
Fund reserve to restore the reserve to the $1.8 million that it has
been for the past few years. She would recommend that this decision
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be made, adding that there is another option which is to leave the
money in her budget pending future decisions. She noted that this
date is when the budget is adopted and if there is a different deci-
sion made on September 22, 1987, the adopted budget cannot be changed.
aOOK 107 f~·.: 557
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SEPTEMBER 21, 1987
She noted that only changes could be made passed on budg~t amendments
lllter on.
Commissioner Pistor stated that this is not going to change the
tota). of the budget and it is not known what Mrs. Morgan's expenses
ðre to date on this matter, and he would prefer that it be left where
it is until all bills are in. Budget Director Zalka stated that
Mrs. Morgan did agree that she·~lould not need the $88,700 in the
budget for FY 87-88. She noted that the money in this year's budget
will be needed to pay for the expenses. Commissioner Saunders
stated that he thinks that it should be taken out of her budget and
put back into contingency. Commissioner Coodnight stated that she
discussed this with Mrs. Morgan and she is recommending that it be
taken out of her budget. Commissioner Hasse stated that it seems
to be consensus to Lake it out of her budgel.
Budget Director Zalka stated that as a result of this change, the
bottom line net total of the budget will not change, adding thðt it is
still $192 million, but the reserve does go up to the $1.8 million as
i~ was originally.
Commissioner Saunders questioned if the $192 million includes the
projected money that the County would have gotten from the sales tax
on services from the State, to which Budget Dir~ctor Zalka replied
affirmatively, adding that there is $532,000. She noted that if this
money is not obtained, it will have to come out of the reserve for
contingency. She noted that the budget is based on receiving that
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money and a 10% growth in all sales from the existing local sales tax.
She noted that the State 0stimates a 20% growth factor, adding that if
the State is right and lhe County gets 20%, but the services tax is
lost, there will still be approximately what is estimated $7.3
million. She noted that the County may get the money anyway by highe,
growth. She not~d that she would keep an eye on these things and make
adjustments accordingly.
Budget Director Zalka stated that she needs to have a resolution
~pproved to amend the adopted tentative budget.
Commissioner Saunders moved, seconded by Commissioner Glass and
carried unanimously, tbat ResOlution 87-215 amending tbe PY 1987-88
téntative þUdget per the attachments be adopted. See pages~'/-~/".
Commissioner Saunders moved, seconded by Commissioner Glass and
carried unanimously, that Resolution 87-216 adopting the PY 1987-88
~inal budget be adopted. See Pages 6// - 6 /~
Budget Director Zalka indicated that the resolution setting the
millage rate needs to be adopted, but all the millage rates need to be
read into the record, which she did.
In answer to an unidentified person in the audience, Budget
Director Zalka stated that Naples Parks lighting is .2536 mills which
is a small rate in itself but last year's was smaller. She noted thaI:
the small lighting districts rates go up and down based on the carry
forward that can be used from year to year. S~~ indicated that this
is a portion of the MST that is on the next notice. She indicated
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eODK 107 P~'.¡ 55.9
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SEPTEMBER 21, 1987
that last year it was .0131 mills and this year it is .2536 mills
which represents a high percentage because it is a small rate:
Commissioner Pistor moved, seconded by Commissioner Goodnight and
carried unanimously, that Resolution 87-217 adopting the PY 1987-88
millage rates to be levied according to the attached list of millage
rates be adopted. See Pages ¿, /3 - ~ ¡..s- .
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There being no further buslnèss, the meeting was adjourned by
Order of the Chair - Time: 8:10 P.M.
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CLERK
BOARD OF COUNTY COMMISSIONERS/
BOARD OF ZONING APPEALS/EX
OFFICIO GOVERNING BOARD(S) OF
SPECIAL DISTRICTS UNDER ITS
CONTROL
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\~.···..·'-Tþ'~s~'min~res approved by the Board on
. j,~'r'~~nt:M"'~- or as corrected
I, t:,'~
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