BCC Minutes 07/14/1982 W (AM)
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Naplr.s, Florida, July ]11, ]992
LET IT BE REMEMBERED, that thð Board of County Commlsøloners In
and for the County of Collier, and also acting as the governing
board(s) of such special districts as have been created according to·
law and having conducted businoss herein, mot o~ this date at 10100
~.M. In Workshop Session in Building -F- of the Courthouse Complex,
East ¡Naples, Florida, with the following members presentl
CHAIRM^NI C. R. -Russ- Wimer·
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VICE CHAIRM^NI Mary-Frances Kruso
John 11.. PIstor
Clifford Wenzel
David C. Brown
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~LSO PRESENTI William J. Reagan, Clerk; James C. Ciles, Fiscal
Officer I Harold H3l1, Chief Deputy Clerk; Maureen J\enyon, Deputy Clerk;
Burt L. Saunders, County Attorney; C. William Normðn, County Managerl
Sam Colding, Property Appraiser; Guy Carlton, T~x Collector; Sheriff
Aubrey RogersJ Don lIunter, Sheriff's Department; Neil Dorrill, Public
Safety Director; Don Norton, Public Services Administrator; Henry flill,
Management ^nalyst and Brent Perkins, Budget Analyst.
AG f,ND^
1. Review of h~lf cent sales tax legislation and impact on
the FY '82-R3 tentative bUdqct of the ~oðrd ~f County
Commissioners of Collier County.
2. Establish tentative Rchcdúle (or the Poard of County
Commissioncrfi' workshop to review departmental budget
requests.
Pðqo 1
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069 PACE 61.7
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July l~, 1902
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069 PACEB18
Tðpe 11, :2, 3
Item 1
REVIEW OF It^LF CENT
TENT^TIVE BUDCET OF
COUNTY.
S~LES TAX LEGISL^TION ^ND IMPACT ON THE FY '02-83
TilE ßO^RD OF COUNTY COMMISSIONERS OF COLLIER
Mr. Hall, Chief Deputy Clerk, stated th~t there wore eight
exhibit. in the material which was previously distributed to the Board,
.dding that these exhibits are intended to do two thingsl one is that
the exhibits give gencral information rcqarding the new leqislation,
particularly tho soles tax leqislotion and the changos to the Trim Bill
which qiv~ß tho guidelines for conducting tho hearings and establishinq'
the millage and, secondly, the exhibits givo an over~ll picture of how
this impacts Collier County, particularly tho dollar impact as well as
how Collior County stands re]~tlve to budget requests from the various
departments. He reported that Exhibit 1 is the steps in the
calculation of tho maximum property taxes for FV '82-83, which state.
that the maximum property t~xes that can be levied is the roll back
rate for 1981-82, unless the tax reduction rate that came out in the
legislation this year is lower, then that will be the maximum dollar
taxeø that can be levied; Exhibit 2 ohows that this year, for tho first
time, there is a lO mill aggrcqote cap on Dll the MSTU'a which hos a
minor effect; Exhibit 3 in a cornp~rison of tho estimated maximum
property taxes to be levied, which iR the m~~imum that can bo levied
and the property taxes needod to fund all budget requests as they
stand; F.xhlbit 4 summarizes the use of sales tax revenue by Collier
County, Exhibit 5 is salos tax legislation which i~ ð summary of impáct
on local government Exhibit ~ is tho budget and millage adoption
calendar which was dovoloped by the Department of Revenue, adding that
pag 0 :2
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July 14, 19112
the July 15 dato 18 no longer the ðate for the tentative budqot. He
stated that tho data is now IS days after receipt of tho certified
a....sed values from the Property Appraiser. He noted that Exhibit 7
1_ the proposed'schedule for departmental budget reviews and adoption
of the 1982-83 tentative budget, adding that the important factor to
kenp in mind is that there is ~n August 1 date to meet the Sheriff's
deadUne.
Mr. Hall reforred back to Exhibit 3, indicating tho first Item 1s
tho maximum property tox allowod for Coll~er County, which is an
ðgqregate millage for the first time which covers everything under the
Board of County Commissioners. He stated that Iofhcn all taICeB are àdded
to ~eQt all the budget requftsts it comes to $20,492,85fi.OO whlc~,
subtracted from the estimated maximum property taxfts, exceeds the
maximum property tax by $2.7 million. He stated that this figure of
$2.7 million is an imbalance which can be correctod by roducinq
budgeted operating eICpenditures or by a positive vote in a referendum
to incroaso tðICes by this amount. He stated that there are other
,alternatives such as a reduction in the budgeted expenditures of the
County-wido oporating districts, i.e., the Goneral Fund, Road & Bridge,
Water Managemont and all ~STU'S, adding that any combination 0'
re~uction oxpenses that would reduce taxes any way would give the Board
the'ability to raise taxes in tho General Fund. He reported that
another alternative would be to appropri~to Fome or all of the cash
reserve for October, November and December, adding that this is not a
r.commonded approach. He stated that some or all of the capital
project. in fund 303 could be eliminatod, which is a county-wide
Page 3
&OOK 069 PACç·Sæ
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July 14, 1982
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capital project fund, adding that tho funding came from the General
Fund and, if the Board 80 elected,. the money could be put bock in the
Cor-eral Fund and the projects doferred for ð period of time to ma~.
that money ~vailable. Ho stated that some or all of the MS¡ road
districts could be deforred, which total $534,000, which would make
thoaa taxes available to Increaso tho taxes in the Coneral Fund. He
reported that some or all of th now lighting districts could be
deferrcd until October of 1983 which w9uld simply give the County the
basis to increaso taxes by that amount in the Ceneral Fund or to
establish new foes for services that expand existing fees such as
additional foes for solid wAste takcn to transfer stations.
Mr. Hall reported that in 1976-77 there was a cash reserve ot
Around $3 million which was in the vicinity of 18' of tho legally
allowed 20\ roserve, which is to pr~vidc the Board the cash flow to
meet the October, November, December cash requirements. lie stated that
in 1978, tho cash reserve waS around $l.O million, adding that, at this
point, wo are at $1." which is 3\ and too low. He noted that in the
Road and ,er Idge there is about 5.!)' roscrvo in the General Fund, adding
that there is no reserve in the other fund s ðS the general account is
used as a clearing account for other funds. fie stated that he is
talking about an operating budget of $32 million with about a $1.5
reserve which is 5\ with ft legally allowed 20' reserve which is the
minimum amount of money that is needed in reserve without borrowing In
October, Novembor and December.
He stated that the contingoncy in the Generðl Fund has been
increased from $500,000 to $750,000 which Is 3' with the legal
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July 101, 19f'7.
allowance being 10\, which is a very low point. 110 not~d that the,
fiest figures for the budget had a shortfllll of $3.(; million, adding
that each and every fund has beQn rechecked and now thft shortfall is
$2.7 which moans that expenditurcs have to bo decrcAsed hy that amount
or rovenues must bo increased. He said that it would not bo easy to
~oy. reCft,yes or cðpital project money aa it would havo to be replaced
noxt year. flo concluded by stating thðt next year there will be a 15'
cap.
Commissioner Pistor stated that he did not want to see the cash
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resorve rcduced any moro thnn it already has been, stating that it is
already too low.
Mr. "all stated that therC' are throe DrelU5 that put Collier Coun'ty
in an awkward position, one being that if the County has excess funds
and budgets those funds into tho operating budget tho next year the way,'
the stDtute says you have to, then this year the County is trapped
becauso tho funds cannot be replaced with taxes; secondly, if the
County creates a new taxing distrIct, the tax cannot be levied as a new
tax, adding th^t this would decreaGe the amount of tax that can be
levied in the General Fund becauso it is an aggrcgato rate county-wide,
and, thirdly, tho more growth, tho moro new construction, tho less
overall taxcs the County can levy becnuao, in the calculation of tho
roll back rate, the millage goes do~n, thoreforo a smaller and smaller
millage is being npplicd to the 10\ estimnted qro~th.
Ho rcferred to tho calculation of tho maximum property taxes,
statinq that t~o total taxes levied last year was $17,199,000.00,
adding that if an cstimatod la' growth is used there would be a roll
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back tax rate of $18,919,847.00, which would bo the maximum taxes to be
lovied throughout the County unless, in the calculation of what is
called a tax ðdJus~ment rate adjusted by an allowance of IS\ growth and -
a c~lculðtion callcd a hold harmless calculation, ð lower figure Is
datormined which Is whitt happens in Collier County, therefore, .Collier
County ends up with a tax rate of $17,774,390.00 which is the maximum
dollars of prùperty taxes that can bo levied by tho Coard of County
Commissioners this year. 110 reported that since that rate i8 less than
tho abøoluto stðte wide cap, Collier County must go with the
$17,731,000.00 rðte. Jlo 8tated that 40\ of the 95' of the total sales
tax must be uoed for tax reduction which is being used in the
unincorporatad area (or roads, adding that this excludes the ~O, of the
sales tax which is bcin~ used for the bond issue. He also reported
,that this excludes any existing voted levies.
Mr. Hall reported that the estimated sales tax is $3.8 million,
adding that the law requires 40\ be used for tax reduction, ~O\ ls.Þt ,_
the Board's discretion, but 14~6' of that mU$t be used for county-wide
expenditures which iß based on population, which would be met by using
tho entire ~o, sales tnx for the jail and courthouse bond issuo as that
would be considered a county-wide expenditure.
He concluded by stating that, in addition to any direction the
Board may have in finalizing the tentative budget, he would like a date
'set for the next workshop regarding departmental budgets in order to
work toward a date for the adoption of the tentative budget, adding
that IS days are needed after the assessed values are received to adopt
the tentative budget, calculate the millðqes and submit them to ~r.
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.'July 1"1, 19n,
Coldln9 with the date, time, and placo of tho first public hearing. .
Commissioner plotor qu~stioned, if tho sal~s taxes do not pro~uce,
what happens to the' budget? Mr. Hall repliod that' the numbers that aro
uaed are offi~al numbers and, if the government changcs tho numbers
they would have to be adjusted, adding th~t ~bout 10\ has been allowed
for luch a situation. Chairman Wim~r stated, if necessary, thore would
have to be an amended budgot downward.
Chairman Wimer stated that b~sicðlly th9 County is using the salos
tax to fund the new construction, adding that the County falls under
the new law regarding tho millage cap and thore will bo some things
that cannot bo done. He noted that thcre is a decision to be made
which is whether the new building gets built and the sales tax used as
planned or does that money get usod for th~ operation of the County
instea~. He stated that the courthouse expansion has been delayed tor
aeveral years and it now has to be done, therefore, all budgets will
hava to be cut if that is the Bonrd's decision.
Commissionðr Wenzel stated that he thought last year there had
been a decision made regarding a freeze on hiring, no new divisions to
be set up and to live within thoir budget, adding that ho thought the
same ~as to hold for this year. He stated that there would be
increases in salaries for those th~t werc alroady employed, which would
be held to 5\.
Chairman Wimer stated that he felt thðt everyone has tried to keep
their budget down, but it will still havo to come do_~ furthar. He
aU9gestod ~hat each departmont should tÐke action to stop any
expenditures for tho rest of the year in order to ~ain ^s much money aa
Pðq8 7
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'&001( 069 fACf 6M
July 14, 19112
possiblo. Also, no one should be hired or any vðcnnclco tilled unlous
tho Board ðuthoriz~s it, no ~ore cðplt~l ~xp~nditurcG, and no further
equipment be purchðsed that has been budgoted, for the next tew monl;hs
in order to built up the cash cðrryover. He 8t~ted that if thero 18
anything internally that can wait, It ift incumbent of the Board to do
80.
Mr. Hall stated that, in following Chairman Wimer's suggestion,-
tho county would g~in an extra approximate $300,000. Ho noted that in
tho past few years, the depðrtmento hnve been spending their budgets,
adding that throe yeðrs ago there was cash carryover from departments
not spending their budgets. He stated that this year it appears that
departments will be spendIng their budgets ðnd rcvenues will bo down"
adding that thore may be a shortfall in revenues before the end of the
,
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Chairman Wimer stated that the Doard should look at ðny capital
projects that have not begun to see i( they could be postponed for the
rest of this year.
Clerk Reagan stated that som~ dircction has to be given to all
departments under the Clerk, the Sheriff, the Manager, the Board,
anybody that has any impact with revenues or expenditures to let the~
know what the problem is and how much tho budget has to be cut, to
which Chairman Wimcr agreed.
Mr. Hall stated that tho problem would not end this year, adding
that it thero is not direct reduction from operating expenses and
direct recurring increases in revenues, next year will be similar when
there is ð 15' cap on taxos.
He stated that if taxes are 50' of tho
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July Iii, 19A2
operating funda and a 15' increaso in taxas and there is no chenge In
revonue., thoro is 7-1/2\ now monoy to work with, which might be the
I\ðxlmum. He stated that if thQre is any further decreaso in r.vonues,
the new money drops down to about 6'.
Chairman Wimer questioned if tho courthouso addition was not built
would thore still be a problem, to which Mr. Hall replied that there
would only be a half million shortfoll which could be obtained through
deferring soma capital proj~cts. Chairman Wimer stated that he wanted
en opinion from othcr constitutional officcrs re~arding the courthouse
expansion, adding that he is not advocating this, but would simply like
to ask each officer.
Sheriff Rogcrs stated that tho jail is co~pletely full nnd he has
to keep moving peoplo around. He stated that tho Stato is making
demands and they h~ve not done anything as far, os taking the County
into court because thc Stntc realizcs that tho County is moving forward
on the expansion, addin~ that the minuto the expansion is deforred, the
COUQty will ond up in court with a suit against them.
Chairman Wimer stated that the County moved forward regarding th.
expansion, but now that each department is going to have to cut their
budqet, he felt that it is only fair to ask each constitutional officer
his feolings on the expansion.
Mr. Carlton stated that he agreed with tho now building, adding
that he hoped to havo his bud~ct completed by the ond of tho week.
Mr. Colding stated that there is ð problem and the County has to
go according to priorities.
Clerk Raagan stated that he undorstands thc problem regarding tho,
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~OD1( 069 fACt 535
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MOP: 069 fAct.
July 14, 1902
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jol1, adding th~t, howovor, it iN hard (or him to accept ð S30 million
Justice Center. 110 statod thðt he felt thðt the State Attorney, the
Public Cafendor and tho Judges should be part of the decision.
Mr. Hall statéd that the ~illðge rate for Collier County is the
10woÐt in the state, Dddlng that the one time that the County needs to
raiae taxes, it cannot.
Chairman Wimer stat.ed thðt there would obviously have to be some
reductions in tho budgot expendituros and somo priorities aot.
...*.*~ Recoss lll20 A.M. - Reconvened 11:30 A.M.·*······
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TENT~TIV!: AUDGET SCHEDULES SET FOR MONDAY, JULY 19, 1982, 11100 ~.H.
FOR SOLID W^STE FEES AND COUNTY MAN^Cf.R ^ND JULY 19, 1982, 1:30 P.M.
FOR SHERIFF'S DEPARTMENT - (SCfIEDULE ~^S CHANGED L^TER IN DAY)
Chairman Wimer directed that Monday, July 19,1982, lllOO a.m., be
set for thn Solid Waste fees ~nd tho County Manager budget and Monday,
July 19, l:30 p.m. be set for tho Sheriff's Budgot, and Tuesday, Julý
20, 1982, 9:00 A.M., for continuðtion of the tcntQtive budgot revi~~.
Mr. Hall stated that the tontative budgct had to be adopted by
August 15, but ho was hoping for a deadline of August 10, 1982.
Tho Board dlr~ctcd Hr. Hðll to put 40~ of tho sales tax in the
unIncorporatod area of the ~STD for roads and 60\ for General Gund
purposos.
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Thore being no furthor bunincss for the good of the County, the
meotinq woo adjourned by ordar of the Chair - Timo 11145 A.M.
pege 10
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