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BCC Minutes 09/21/1987 B - - - 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 Page 1 ,~ 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 Page 2 "'--""'-~"---- ,..... ....~~.~_......_.~-"'~;-~.",...~".>,,~.._,- 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 Page 3 .. .. .. 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 Page 4 eOOK 107 p~'.: 551 1m fA'.! 552 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 Page 5 - - - - - 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 Page 6 107 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. . 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 Page 7 - - - .. - - SEPTEMBER 21, 1987 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 Page 8 1m 1m fA'.; 556 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 . 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. Page 9 .. - - SEPTEMBER 21, 1987 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 . 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 Page 10 ~ ~~ . ,tot Im",,··:55S 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 Page 11 .. - .. --- _._--~_...- SEPTEMBER 21, 1987 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 Page 12 eODK 107 P~'.¡ 55.9 107 PAr.t 560 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- . . . . * * * * * * * * . * There being no further buslnèss, the meeting was adjourned by Order of the Chair - Time: 8:10 P.M. -' ATTE.S1'· . , ~~~~~~G'nr;' / ~~.:..{ . . . i." ~.; - CLERK BOARD OF COUNTY COMMISSIONERS/ BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL ~~g~~ ¥~HI.r [)c: ...... a~ 22/7'J>;? . .. . J.« \~.···..·'-Tþ'~s~'min~res approved by the Board on . j,~'r'~~nt:M"'~- or as corrected I, t:,'~ Page 13