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Agenda 10/09/2018 Item # 2D10/09/2018 COLLIER COUNTY Board of County Commissioners Item Number: 2.D Item Summary: September 20, 2018 - BCC/Budget Hearing Meeting Minutes Meeting Date: 10/09/2018 Prepared by: Title: Executive Secretary to County Manager – County Manager's Office Name: MaryJo Brock 09/28/2018 7:37 AM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 09/28/2018 7:37 AM Approved By: Review: County Manager's Office MaryJo Brock County Manager Review Completed 09/28/2018 7:37 AM Board of County Commissioners MaryJo Brock Meeting Pending 10/09/2018 9:00 AM 2.D Packet Pg. 15 September 20, 2018 Page 1 TRANSCRIPT OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS Naples, Florida, September 20, 2018 BUDGET HEARING LET IT BE REMEMBERED, that the Board of County Commissioners, in and for the County of Collier, and also acting as the Board of Zoning Appeals 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 5:05 p.m., in REGULAR SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Andy Solis William L. McDaniel, Jr. Donna Fiala Burt L. Saunders Penny Taylor ALSO PRESENT: Leo Ochs, County Manager Nick Casalanguida, Deputy County Manager Mark Isackson, OMB Director Jeffrey A. Klatzkow, County Attorney September 20, 2018 Page 2 MR. OCHS: Mr. Chairman, you have a live mic. CHAIRMAN SOLIS: Thank you, Mr. Manager. Welcome to the Board of County Commissioners September 20th, 2018, budget hearing. PLEDGE OF ALLEGIANCE We will begin with the Pledge of Allegiance. And if Commissioner Taylor could lead us in the pledge. (The Pledge of Allegiance was recited in unison.) COMMISSIONER TAYLOR: I just want to say that this is the second time today I've stood and said the Pledge of Allegiance because the first time was when my son and 26 other people were sworn in as citizens of the United States at the Lee County Courthouse. CHAIRMAN SOLIS: Congratulations. MR. OCHS: Wow. Congratulations. That's awesome. COMMISSIONER TAYLOR: Yeah. So it's a great day. CHAIRMAN SOLIS: Nice. MR. OCHS: Great. MR. OCHS: Mr. Chairman, this is the second of two statutorily required public hearings culminating in the adoption of your Fiscal Year 2019 Collier County budget. And, with your permission, I'll turn this directly over to Mr. Isackson, and he can take you through the agenda for this evening. Item #1A DISCUSSION OF FY 2018-19 MILLAGE RATES AND INCREASES OVER THE ROLLED BACK MILLAGE RATES – PRESENTED September 20, 2018 Page 3 MR. ISACKSON: Thank you, County Manager Ochs. Commissioners, there's a specific set of procedures that are contained in the TRIM statutes that have to be followed tonight, and I'll begin my remarks by indicating that this is the final budget hearing on the Collier County's Fiscal Year 2019 budget which begins October 1, 2018, and runs through September 30th, 2019. This final public budget hearing must follow a specific format pursuant to truth and millage guidelines. And the agenda before you contains a specific sequence of agenda items to be covered. Pursuant to Florida Statute, Chapter 200, the required advertisement for this hearing was published in the Naples Daily News on Monday, September 17, 2018. You want me to slow down a little bit? I will. Thank you. MR. OCHS: Terri's sweating over there. COMMISSIONER McDANIEL: She's a fast typer. MR. ISACKSON: Agenda and speaker slips are available in the hallway. Anyone interested in addressing the Board of County Commissioners regarding the county's budget must complete a speaker slip. Following some introductory remarks, public comment will be heard under Agenda Item 1C, and speakers will be called by name. Commissioners, under Item 1A is a discussion of the 2018-19 millage rates and increases over the rolled-back millage rates. State law requires that the first substantive issues to be discussed are, one, percentage increase in millage over the rolled-back rate needed to fund the budget and, two, the reasons ad valorem tax revenues above the rolled-back rate as calculated on the State's DR420 forms are being increased. Rolled-back rate is defined as that tax rate necessary to generate prior tax year -- prior year tax revenues, and this rate is calculated not September 20, 2018 Page 4 including taxable values associated with new construction, additions, deletions, and rehabilitative improvements. The Board adopted budget guidance for FY'19 included a millage neutral operating levy position -- the same tax rate as last year and, for that matter, since FY 2010 for the General fund. For the Unincorporated Area General Fund, the millage rate was, once again, set at the FY 2007 rate of .8069 pursuant to board guidance with the additional marginal ad valorem dollars above millage neutral devoted to continuing the median landscape capital program. Levies for the General Fund and Unincorporated Area General Fund together represent over 97 percent of the total aggregate tax levies across all Collier County taxing authorities. At the hearing of September 6th, the Board directed that the planned stormwater utility and related utility fee be eliminated and the stormwater budget structure for FY '19 be amended. Resolutions amending the FY 2019 budget for this final hearing accomplish this directive. The Board should also be reminded of the fluid nature of the county's budget and, further, that budget, as a planning tool, is regularly amended during any fiscal year based upon changing Board policy priorities as well as operational capital adjustments necessitated by those changing policy priorities; service levels, adjustments, or capital execution patterns. Both the General Fund and Unincorporated Area General Fund tax rates are higher than the rolled-back rate. Collier County taxable value has increased over the past seven years, fiscal years, and the increase for Fiscal Year 2019 is 5.63 percent and 5.86 within the General Fund and Unincorporated Area General Fund respectively. Within an increasing taxable value environment under millage-neutral operating and capital policy guidance, the rolled-back rate will be lower than millage neutral, and this event occurs in FY 2019. September 20, 2018 Page 5 The General Fund budget model places a premium on preserving and protecting sufficient cash balances, maintaining adequate reserves for a coastal location, ensuring that the county's excellent investment quality credit rating's maintained, and allocating sufficient available resources to maintain our substantial public safety infrastructure and operational investment. Mindful of this prudent fiscal policy, the Board each year decides on tax rate policy, and budget decisions are made around Board enacted budget policy. Referring to Exhibit 1A on Page 1, Commissioners, the roster of tax rates adopted by the Board on July 10th, 2018, represents the maximum property tax rates that can be levied in FY 2019. The cumulative aggregate rolled-back rate for all Collier County taxing authorities, exclusive of debt service, totals 4.0636 per $1,000 of taxable value. The proposed aggregate tax rate for all Collier County taxing authorities, exclusive of debt service, totals 4.1767 per $1,000 of taxable value. COMMISSIONER FIALA: Mark, what page are you on, please? COMMISSIONER McDANIEL: Page 1. MR. ISACKSON: Well, we're still on the agenda, Commissioner. I'm just reading my prepared remarks into the record so I make sure that we're in compliance. COMMISSIONER FIALA: Oh, okay. I thought maybe I could follow you a little closer. Okay. Thank you. MR. OCHS: Page 1 of Exhibit A in your material. COMMISSIONER FIALA: Thank you. MR. ISACKSON: This represents an increase of 2.78 percent over the aggregate rolled-back rate and a required notice of property tax increase ad for TRIM purposes and not simply a budget summary ad. September 20, 2018 Page 6 Item #1B DISCUSSION OF FURTHER AMENDMENT TO THE TENTATIVE BUDGET MR. ISACKSON: Commissioners, under Item 1B on the agenda is a discussion of further amendments to the tentative budget. Regarding the county's final budget hearing, resolutions amending the September 6th, 2018, amended tentative budget are presented reflecting the Board's action to postpone creation of the stormwater utility and related utility fee; further receipt of Hurricane Irma insurance reimbursements and other routine revenue and expense adjustments which reflect actual accounting activity and/or a timing of certain projects. Final budget eliminates the stormwater utility budget structure and utility fee and restores the traditional funding mechanism for stormwater maintenance and capital, which are general governmental transfers from the General Fund and Unincorporated Area General Fund. Stormwater operations will be accounted for in Fund 103, and capital/maintenance funding will be accounted for in Fund 325. Funding for maintenance and capital with revisions is on par with that established in Fiscal Year 2018 at roughly $8.3 million. Within the "Summary Narrative of Changes" identified in the detail is how traditional stormwater funding was restored. Essentially, that restoration was $8.3 million, and that was achieved through a combination of reserve reductions in the General Fund and Unincorporated Area General Fund totaling $5.2 million; reduction in a parks capital reserve, which was not programmed and represented freed-up money if the utility was actually implemented, at $1.2 million; expense reductions for payment-in-lieu-of fees in the amount September 20, 2018 Page 7 of $800,000, which is in the Unincorporated Area General Fund; and forecast revenue increases representing received income in the accounting system over that forecast in the Unincorporated Area General Fund in our Transportation Services Fund 101. That amount totaling approximately $1.1 million. Commissioners, that's a high-level summary of the amendments to the tentative budget. And if there are no questions on that, then we can turn to Item 1C on the agenda, which are public comments and questions. CHAIRMAN SOLIS: Questions? (No response.) CHAIRMAN SOLIS: Let's proceed. Item #1C PUBLIC COMMENTS AND QUESTIONS MR. CASALANGUIDA: Mr. Chairman, you have one registered public speaker; Mr. Brad Estes. Brad, you'll be given three minutes. MR. ESTES: Okay. Thank you. Sorry for the delay. Good evening, Commissioners. My name is Brad Estes. I'm the secretary of the Poinciana Civic Association. And as you know why I'm here, I'd like to say again, we have a problem. But I want to, first of all, thank all the commissioners that voted and supported the stormwater utility fee, a set tax the other day. I've heard it so much, but a fee. It was a courageous thing to do. It was the right thing to do. And it's been, what, 28 years since that ordinance was adopted, about the time we started having difficulty with our stormwater system because of deferred maintenance. So we do appreciate that, and we September 20, 2018 Page 8 continue to support it and will continue to support it as it progresses to the next year for reconsideration, which hopefully will occur. What you're looking at is a -- and it's not showing up really well, I'm sorry. What you're looking at is what actually Bill Carrigan put in his letter to you is it's our south ditch, which has grown with weeds that are about, let's say, shoulder high. That's after they were sprayed by stormwater, which was in, I think, late -- probably middle of September. But they still impede flow. Underneath those weeds is a bed of grass, dead grass but, frankly -- and that's near the headwater of our ditch. And for those of you that don't know, we have a perimeter ditch that our stormwater drainage drains at the streetlight -- street side, empty into. So that's very important. If it doesn't work, then we flood. The north ditch is similar but for a different reason. We've had growth of vegetation that has gone into the ditch from an adjacent property, and it's blocked about midway towards the back where it shifts south and goes into the upper Gordon River. Actually, goes into the estuary canal and then the Gordon River. What we're asking for you to do is to look for additional funds. I understand we're funded for -- we were funded last year about 2.8 million, is what I saw the number for, for operating, for maintenance -- is to consider, throughout the year if you have additional funds that become available where their turnback's greater than what was expected or you have projects that are put on hold because of permit problems, things like that, that you consider transferring that into stormwater. And we're not the only one. I'm not saying we're the only one. We're not the only one. There are swales -- for example, our swales are bad all over. I see them all over the place that haven't been restored for years. So please consider that as the year progresses and ask Leo to September 20, 2018 Page 9 bring that to you for your consideration. I appreciate that. That's it. Thank you. CHAIRMAN SOLIS: Thank you. MR. CASALANGUIDA: Mr. Chairman, you have no other speakers registered. Item #1D RESOLUTION 2018-156: AMENDING THE TENTATIVE BUDGETS – ADOPTED MR. ISACKSON: Mr. Chairman, that brings you to Item 1D, which is a resolution to amend the tentative budgets which were discussed under Item 1B that are contained in your packet under Pages 1 through 18 under Item 1D. MR. OCHS: Tab? MR. ISACKSON: Yes, a tab. MR. OCHS: It's the tab marked "amending budget resolution" in the book. MR. ISACKSON: Yeah, a motion would be appropriate. COMMISSIONER McDANIEL: I was just going to say I'll make a motion to approve the resolution as printed. CHAIRMAN SOLIS: Motion by Commissioner McDaniel. Is there a second? COMMISSIONER FIALA: Second. COMMISSIONER SAUNDERS: I'll second that. CHAIRMAN SOLIS: A second by Commissioner Fiala first. Any discussion? (No response.) CHAIRMAN SOLIS: All in favor, say aye. COMMISSIONER McDANIEL: Aye. September 20, 2018 Page 10 COMMISSIONER FIALA: Aye. CHAIRMAN SOLIS: Aye. COMMISSIONER TAYLOR: Aye. COMMISSIONER SAUNDERS: Aye. CHAIRMAN SOLIS: Any opposed? (No response.) CHAIRMAN SOLIS: Motion carries. Item #1E PUBLIC READING OF THE TAXING AUTHORITY LEVYING MILLAGE, THE NAME OF THE TAXING AUTHORITY, THE ROLLED-BACK RATE, THE PERCENTAGE INCREASE, AND THE MILLAGE RATE TO BE LEVIED – READ INTO THE RECORD MR. ISACKSON: Commissioners, Item 1E, excuse me, is a public reading of the taxing authority levying millage, the name of the taxing authority, the rolled-back rate, the percentage increase, and the millage to be levied. This is where I actually have to go through, once again, and read all this stuff, so if you'll bear with me. Commissioners, General Fund, the proposed millage rate, 3.5645; the rolled-back millage rate, 3.4622. It's a percent change from the rolled-back rate of 2.95 percent. Water Pollution Control, the proposed millage rate, .0293; the rolled-back millage rate, .0284. Percent change from the rolled-back rate of 3.17. The Unincorporated Area General Fund, the proposed millage rate, .8069; the rolled-back millage rate, .7860. That's a percent change from the rolled-back rate of 2.66 percent. The Golden Gate Community Center, proposed millage rate, September 20, 2018 Page 11 .1862; the rolled-back millage rate, .1787. That's a percent change from the rolled-back rate of 4.20 percent. The Victoria Park Drainage MSTU, the proposed millage rate, .0323; the rolled-back millage rate, .0323. No change from the rolled-back rate. Naples Park Drainage, the proposed millage rate, .0057; the rolled-back millage rate, .0057. No change from the rolled-back rate. The Vanderbilt Beach MSTU, the proposed millage rate, .5000; the rolled-back millage rate, .4781. The percent change from the rolled-back rate is 4.58 percent. The Ochopee Fire Control District, proposed millage rate, 4.0000; the rolled-back millage rate, 4.7442. That's a percent change from the rolled-back rate of a minus 15.69 percent. The Goodland Horrs Island Fire MSTU, the proposed millage rate, 1.2760; the rolled-back millage rate, 1.2541. A percent change from the rolled-back rate of 1.75 percent. The Sabal Palm Road MSTU, the proposed millage rate, 0.0000; the rolled-back millage rate, 0.0000. No change from the rolled-back rate. The Golden Gate Parkway Beautification MSTU, proposed millage rate, .5000; the proposed -- the rolled-back rate, excuse me, .4644. Percent change from the rolled-back rate of 7.67 percent. The Lely Area Golf Estates Beautification MSTU, the proposed millage rate, 2.0000; the rolled-back millage rate, 1.8885. A percent change from the rolled-back rate of 5.90 percent. The Hawksridge Stormwater Pumping MSTU, the proposed millage rate, .0398; the rolled-back millage rate, .0398. There's no change from the rolled-back rate. The Radio Road Beautification MSTU, the proposed millage rate, .1000; the rolled-back millage rate, .0959. That's a percent change from the rolled-back rate of 4.28 percent. September 20, 2018 Page 12 The Forest Lakes Roadway and Drainage MSTU, the proposed millage rate, 1.3793; the rolled-back millage rate, 1.2652. The percent change from the rolled-back rate, 9.02 percent. The Immokalee Beautification MSTU, the proposed millage rate is 1.0000; the rolled-back millage rate, .9726. The percent change from the rolled-back rate, 2.82 percent. The Bayshore Avalon Beautification MSTU, the proposed millage rate, 2.3604; the rolled-back millage rate, 2.2832. Percent change from the rolled-back rate, 3.38 percent. The Haldeman Creek Dredging MSTU, the proposed change is 1.0000; the rolled-back millage rate, .6859. That's a percent change from the rolled-back rate of 45.79 percent. The Rock Road MSTU, proposed millage rate is 3.0000; the rolled-back millage rate is 2.7546. Percent change from the rolled-back rate of 8.91 percent. Forest Lakes Debt Service, the proposed millage rate, 2.6207; the rolled-back millage rate, 2.5027. Percent change from the rolled-back rate of 4.71 percent. The Collier County Lighting District, proposed millage rate, .1549; the rolled-back millage rate, .1549. No change from the rolled-back rate. The Pelican Bay MSTBU, the proposed millage rate, .0857; the rolled-back millage rate, .0828. That's a percent change from the rolled-back rate of 3.50 percent. And, finally, Commissioners, your aggregate millage rate, the proposed millage rate of 4.1767; the rolled-back millage rate, 4.0636. That is a percent change from the rolled-back rate of 2.78 percent. Item #1F RESOLUTION 2018-157: ADOPTION OF RESOLUTION September 20, 2018 Page 13 SETTING MILLAGE RATES. MOTION TO APPROVE THE DEPENDENT DISTRICT MILLAGE RATES – APPROVED; MOTION TO APPROVE THE REMAINING DISTRICT RATES – APPROVED: RESOLUTION ADOPTED Commissioners, under Item 1F is the adoption of the resolution which sets the millage rates. A separate motion -- there'll be two motions. A separate motion is require for the dependent district millage rates and a separate motion is required for the remaining millage rates. CHAIRMAN SOLIS: Is there a motion on the dependent district rates? COMMISSIONER TAYLOR: So moved. COMMISSIONER FIALA: Second. CHAIRMAN SOLIS: There's a motion and a second. All in favor, say aye. COMMISSIONER McDANIEL: Aye. COMMISSIONER FIALA: Aye. CHAIRMAN SOLIS: Aye. COMMISSIONER TAYLOR: Aye. COMMISSIONER SAUNDERS: Aye. CHAIRMAN SOLIS: Any opposed? (No response.) CHAIRMAN SOLIS: Motion carries. Now, is there a motion on the remainder of the millage rates? COMMISSIONER TAYLOR: So moved. COMMISSIONER FIALA: Second. CHAIRMAN SOLIS: Motion and a second. All in favor, say aye. COMMISSIONER McDANIEL: Aye. COMMISSIONER FIALA: Aye. September 20, 2018 Page 14 CHAIRMAN SOLIS: Aye. COMMISSIONER TAYLOR: Aye. COMMISSIONER SAUNDERS: Aye. CHAIRMAN SOLIS: Any opposed? (No response.) CHAIRMAN SOLIS: It's approved unanimously. Item #1G RESOLUTION 2018-158: ADOPTION OF RESOLUTION SETTING MILLAGE RATES. MOTION TO APPROVE THE DEPENDENT DISTRICT BUDGET – APPROVED; MOTION TO APPROVE THE REMAINING BUDGETS – APPROVED: RESOLUTION ADOPTED MR. ISACKSON: Finally, Commissioners, Item 1G it's a resolution to adopt the final budget by fund. Note that a separate motion is required for the dependent district budgets and a separate motion is required for the remaining budgets. CHAIRMAN SOLIS: Again, is there a motion on the dependent district? COMMISSIONER TAYLOR: So moved. COMMISSIONER FIALA: Second. CHAIRMAN SOLIS: Motion and a second. All in favor, say aye. COMMISSIONER McDANIEL: Aye. COMMISSIONER FIALA: Aye. CHAIRMAN SOLIS: Aye. COMMISSIONER TAYLOR: Aye. COMMISSIONER SAUNDERS: Aye. CHAIRMAN SOLIS: Any opposed? September 20, 2018 Page 15 (No response.) CHAIRMAN SOLIS: They're approved. And now a motion on the remainder? COMMISSIONER FIALA: So moved. COMMISSIONER TAYLOR: Second. CHAIRMAN SOLIS: Motion and a second. All in favor, say aye. COMMISSIONER McDANIEL: Aye. COMMISSIONER FIALA: Aye. CHAIRMAN SOLIS: Aye. COMMISSIONER TAYLOR: Aye. COMMISSIONER SAUNDERS: Aye. CHAIRMAN SOLIS: Any opposed? (No response.) CHAIRMAN SOLIS: They're approved as well. MR. ISACKSON: Commissioners, congratulations. You've approved your FY '19 millage rates and budget. I have no further comments. CHAIRMAN SOLIS: Thank you. COMMISSIONER FIALA: In just 27 minutes -- oh, no, 22 minutes. COMMISSIONER SAUNDERS: Mr. Chairman? CHAIRMAN SOLIS: Yes. We have Commissioner Saunders. COMMISSIONER SAUNDERS: I just want to point out that when Mr. McDaniel chaired the first budget hearing it took six hours. You chaired the second one, and it took 22 minutes. So congratulations. CHAIRMAN SOLIS: Twenty-minutes. Well, thank you. Thank you for pointing that out. COMMISSIONER McDANIEL: It wasn't six hours. COMMISSIONER TAYLOR: Yes, it was. September 20, 2018 Page 16 COMMISSIONER McDANIEL: Five and a half. COMMISSIONER TAYLOR: Staff is nodding their heads. CHAIRMAN SOLIS: Yes, it was. COMMISSIONER TAYLOR: Yes, it was. MR. OCHS: That's all we have for you this evening, Commissioners, and thank you very much for your perseverance in going through this process. COMMISSIONER TAYLOR: Thank you. COMMISSIONER SAUNDERS: Thank you. CHAIRMAN SOLIS: Thank you. MR. OCHS: Appreciate it. CHAIRMAN SOLIS: We're adjourned. ***** September 20, 2018 Page 17 There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 5:28 p.m. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL ___________________________________ ANDY SOLIS, CHAIRMAN ATTEST CRYSTAL K. KINZEL, CLERK ___________________________ These minutes approved by the Board on ______________________, as presented ______________ or as corrected _____________. TRANSCRIPT PREPARED ON BEHALF OF U.S. LEGAL SUPPORT, INC., BY TERRI LEWIS, COURT REPORTER AND NOTARY PUBLIC.