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BCC Minutes 09/18/2014 B (Budget) BCC BUDGET MEETING MINUTES September 18, 2014 September 18, 2014 TRANSCRIPT OF THE MEETING OF THE 5:05 BUDGET MEETING BOARD OF COUNTY COMMISSIONERS Naples, Florida, September 18, 2014 LET IT BE REMEMBERED, that the Collier County Commissioners, in and for the County of Collier, having conducted business herein, met on this date at 5:05 p.m. in BUDGET SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Tom Henning Tim Nance Donna Fiala Fred Coyle (Absent) Georgia Hiller ALSO PRESENT: Leo E. Ochs, Jr., County Manager Jeffrey Klatzkow, County Attorney Mark Isackson, Corporate and Business Financial Services Troy Miller, Communications & Customer Relations Page 1 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA Thursday, September 18, 2014, 5:05 PM NOTICE: ALL PERSONS WISHING TO SPEAK ON AGENDA ITEMS MUST REGISTER PRIOR TO SPEAKING. ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEEDING PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. ALL REGISTERED PUBLIC SPEAKERS WILL BE LIMITED TO THREE (3) MINUTES UNLESS PERMISSION FOR ADDITIONAL TIME IS GRANTED BY THE CHAIRMAN. 1. PLEDGE OF ALLEGIANCE 2. CONTINUATION OF THE AVERTISED PUBLIC HEARING FOR PELICAN BAY SERVICES DIVISION FROM SEPTEMBER 4, 2014 — Pelican Bay Services Division Budget Hearing: A. Executive Summary — Fiscal Year 2015 Pelican Bay Services Division Budget B. Public Comment C. Resolution Approving the Special Assessment Roll and Levying the Special Assessment against the Benefited Properties within the Pelican Bay Municipal Service Taxing and Benefit Unit. 3. ADJOURN Page 1 September 18, 2014 COLLIER COUNTY Board of County Commissioners Community Redevelopment Agency Board (CRAB) Airport Authority `�1 I I, ` r Ot N. ‘', AGENDA Board of County Commission Chambers Collier County Government Center 3299 Tamiami Trail East, 3rd Floor Naples, FL 34112 BUDGET SESSION September 18, 2014 5:05 PM Commissioner Tom Henning, District 3 - BCC Chair Commissioner Tim Nance, District 5 - BCC Vice-Chair; TDC Chair Commissioner Donna Fiala, District 1 - CRAB Chair Commissioner Georgia Hiller, District 2 - Community & Economic Dev. Chair Commissioner Fred W. Coyle, District 4 - CRAB Vice-Chair NOTICE: ALL PERSONS WISHING TO SPEAK ON AGENDA ITEMS MUST REGISTER PRIOR TO SPEAKING. ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEEDING PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. ALL REGISTERED SPEAKERS WILL BE LIMITED TO THREE (3) MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN. Page 1 September 18,2014 IF YOU ARE A PERSON WITH A DISABILITY WHO NEEDS ANY ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS PROCEEDING, YOU ARE ENTITLED, AT NO COST TO YOU, THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY FACILITIES MANAGEMENT DEPARTMENT LOCATED AT 3335 EAST TAMIAMI TRAIL, SUITE 1, NAPLES, FLORIDA, 34112-5356, (239) 252-8380; ASSISTED LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN THE COUNTY COMMISSIONERS' OFFICE. 1. ADVERTISED PUBLIC HEARING — Collier County FY 2014-15 Budget A. Discussion of FY 2014-15 Millage Rates and Increases Over the Rolled Back Millage Rates B. Discussion of Further Amendments to the Tentative Budget C. Public Comments and Questions D. Resolution to Amend the Tentative Budgets E. 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. F. Adoption of Resolution Setting Millage Rates. Note: A separate motion is required for the Dependent District millage rates; and a separate motion is required for the remaining millage rates. G. Resolution to Adopt the Final Budget by Fund. Note: a separate motion is required for the Dependent District budgets; and a separate motion is required for the remaining budgets. 2. ADJOURN Page 2 September 18, 2014 September 18, 2014 MR. OCHS: You have a brand new live mic. CHAIRMAN HENNING: Thank you. COMMISSIONER FIALA: Boy, it sounds better, too. CHAIRMAN HENNING: It does. Welcome to the final hearing of the Board of Commissioners budget hearing. And we will start off with the Pledge of Allegiance, led by Commissioner Fiala. (Pledge of Allegiance was recited in unison.) CHAIRMAN HENNING: Okay. Now we go to the Pelican Bay Services District Budget Hearing. MR. OCHS: Yes, sir, Mr. Chairman. I'll ask Mr. Isackson to introduce the item. MR. ISACKSON: Thank you, County Manager. At this time I'd ask Mr. Dorrill to come up and re-present information that was originally presented on September 4th and discuss with the Board to follow up from that particular meeting. Item #2A (On the Pelican Bay Services Division Budget Agenda) EXECUTIVE SUMMARY — FISCAL YEAR 2015 PELICAN BAY SERVICES DIVISION BUDGET MR. DORRILL: Good evening, Commissioners. At the first hearing you asked me to do several things with the Doyles who are residents and taxpayers in Pelican Bay. We were able to do that last week. From a staff perspective, I think we had an extremely beneficial meeting. I think that it's safe to say that we're not in agreement on everything, and so I'll let Dr. Doyle speak for himself. There were two issues there, one pertaining to the assessment associated with our maintenance and beautification and drainage programs. I believe Dr. Doyle has an understanding of what the Page 2 September 18, 2014 increases are for the coming year. They're primarily that general wage adjustment. And in addition, increased costs of engineering associated with some of the beautification projects and a whole host of drainage analyses that we outsource with the local firm of Agnoli, Barber and Brundage. And then significant increases in our water maintenance, water management maintenance costs attributed to a decision on the part of our board to stop using copper sulfate to treat algae in the lakes there. On the capital side, again we prepared and I brought with me one of our work papers from our budget and finance committee to offset the increase in the capital assessment. In the simplest of terms, we're trying to accumulate cash for future beach renourishment that is our responsibility. I'll pass that out and I'll see if you have any questions, and then perhaps it would be good for you to hear from the Doyles. COMMISSIONER HILLER: Can we have the Doyles speak? MR. MILLER: Sure. COMMISSIONER HILLER: Are you done making your presentation. CHAIRMAN HENNING: He just wants to hand this out. MR. MILLER: Mr. Joseph Doyle has been ceded three additional minutes from Sandra Doyle for six minutes total. Mr. Doyle? Item #2B (On the Pelican Bay Services Division Budget Agenda) PUBLIC COMMENT DR. DOYLE: Good evening, Commissioners. As Mr. Dorrill said, we met last week and we went over the two main parts of the budget, which are the operating budget and the capital budget. Page 3 September 18, 2014 I will say that after his explanation regarding the increased wages, the algae control, et cetera, that the operating portion of assessment for $367 we understand. I will say, however, that we do think that the consultants could be better scrutinized as far as what they're charging us. So I think going forward, even though the assessment is $367, we really need to look at controlling those expenses and finding the lowest cost vendors. And I would say that actually starting for the next budget year as well that we need to look at zero-based budgeting and trying to get those budget costs under control. Regarding the capital budget which you have in front of you -- well, let me just say also that the operating budget does carry two and a half months worth of operating reserves. About $742,000 for cash flow purposes, so I understand that. On the operating side, remember my contention two weeks ago was the fact that there was $2.48 million that we didn't understand what happened to. Well, Mr. Dorrill was able to go over, and we -- the $1.2 million has either been spent or encumbered. And there's another 1 .1 to $1.2 million that's still in the account. About 400,000, 300, 400,000 as can be used for capital projects this coming year, that will still leave the $700,000 reserve. So it's my contention that we don't really need to be collecting additional reserves in the capital budget, except for maybe the $200,000 for the beach renourishment. So that would -- so what I'm trying to say is that we really only should be collecting a $26 and $27 assessment for the capital budget, which when you add that to the 367 would give a total final assessment of$393.27. So I'm really trying to say that we don't need to be adding more reserves to the capital budget. And that's the contention. CHAIRMAN HENNING: Commissioner Hiller? Page 4 September 18, 2014 COMMISSIONER HILLER: If I understand correctly, what we're talking about is the current assessment of 398 and then plus the $28 for beach renourishment; is that correct? DR. DOYLE: The total proposed was 426 and change. COMMISSIONER HILLER: Right, broken up as 398, which is the general operational and capital assessment with $28.63 separately for the beach renourishment. DR. DOYLE: Well, the 398 is really 367 plus $27 of capital that's already been carried over from year to year. COMMISSIONER HILLER: Okay, so 367 plus 27. That's the sum total of the 398? DR. DOYLE: That's the 398. COMMISSIONER HILLER: And your objection is to the 27 for the addition to that 367? You're not objecting to the increase in the reserves for beach renourishment? DR. DOYLE: I think if you want to put aside for beach renourishment since that's a new project we've taken on, that's fine. COMMISSIONER HILLER: So we -- DR. DOYLE: But they still have $700,000 in capital reserves. I mean, the question that came up the last time and you told us to look at it is how much do you really need to be keeping in reserves. COMMISSIONER HILLER: Right, and that's always the question, you know, what is reasonable with respect to reserves. So Neil, you've got two sets of reserves. You have basically your general reserves and you've got your reserve for beach renourishment. Can you explain the need for the additional buildup in the reserves that are non-beach renourishment related? MR. DORRILL: Our board has had a series of projects identified in what they call their community improvement plan. A good example would be the multiple pedestrian brick crosswalks that they built. We're currently, and I think I eluded to last time, we're doing a Page 5 September 18, 2014 multiphase renovation of the landscape medians that are there. We are going to be asked to do some of our own striping as part of the upcoming milling and resurfacing at Pelican Bay Boulevard. And, you know, frankly they have other unidentified or unanticipated projects. The most recent one was last Tuesday, the Board authorized $400,000 in security enhancements and maintenance and renovations of the operation site that is there and shared with the utility division. Our recommended portion of that was an additional $90,000 for things that benefit the public works and the ground staff there. And they just -- you know, I think frankly they like the position of having six to 700,000 in capital reserves other than those that are designated for things like crosswalks, median renovations, improvements to the maintenance facility and things associated with that. DR. DOYLE: And that is there. COMMISSIONER HILLER: So these reserves are not -- you're not actually building reserves for future specific projects. These are reserves for -- these are in fact contingency reserves for unanticipated projects that might come up? MR. DORRILL: Aside from the median renovations there are two final phases of that. That was one of the things I discussed with Dr. Doyle. But all of the other community improvement plan projects would have been accomplished to this point. COMMISSIONER HILLER: So again, let me just clarify. This one reserve account that we're speaking of, is this a contingency reserve or are these reserves being built up because you're anticipating to have these future projects and you don't want to run into a position of being in a financial crunch and you want these monies there. MR. DORRILL: These are contingency reserves. COMMISSIONER HILLER: And the contingency reserve is Page 6 September 18, 2014 700,000? MR. DORRILL: Minus the $90,000 that you would have approved last Tuesday. COMMISSIONER HILLER: Okay, so basically 600,000 then. MR. DORRILL: Roughly. And then there's another hundred for the final phase of the renovation of the landscape medians that I alluded to. COMMISSIONER HILLER: And how much is that? MR. DORRILL: I would say 100, based on the experience that -- COMMISSIONER HILLER: So now we're down from a contingency from of 700,000 to 600,000 to 500,000? MR. DORRILL: I think rough numbers that's -- COMMISSIONER HILLER: So you have a $500,000 reserve on what size budget? MR. DORRILL: Total street lighting capital, maintenance -- COMMISSIONER HILLER: Everything. MR. DORRILL: $4 million a is year. COMMISSIONER HILLER: So as a percentage you're looking at what? I mean -- MR. DORRILL: 15 percent in undesignated capital reserves for future projects. COMMISSIONER HILLER: Mark, having worked through the reserves in our county and knowing how our projects pop up, is a 15 percent reserve unreasonable? MR. ISACKSON: No. And I will say this, that you have a -- you have an Advisory Board at Pelican Bay, just like you have an advisory board for every MSTU that you have. And these folks spend painstaking hours reviewing this budget. We've included what they've requested in their budget. Mr. Dorrill has explained exactly what the reserves are going to be used for. It's not uncommon for MSTUs to have reserves in order for Page 7 September 18, 2014 planning purses. If they want to set aside cash to do projects in the future this is not unreasonable. COMMISSIONER HILLER: Okay, thank you very much. Well, I understand your concerns, Mr. Doyle. But if we are looking at a reserve that staff believes based on the potential for, you know, a contingency project coming up that they don't have to go out and borrow money or, you know, down the road try to assess you to recapture the cost of borrowing in addition to the cost of the project, it is prudent to have reserves. And if Mark, who is the Budget Director, feels that 15 percent is a reasonable reserve, if we're looking really at the real reserve, not something set aside as building up cash for a specific project but as a contingency reserve of 15 percent, then I do have to defer to him. And he is right, if the committee has reviewed this at length and in their opinion it's reasonable, and you have some pretty smart men on than advisory board, I think that it does make sense to keep that additional $27 assessment to allow for that protection. And it should be revisited. I mean, the one thing that's nice about budgeting is that if down the road it looks like it doesn't make sense, we can amend the budget. And if next year it doesn't look like there was a need for the reserves to be at the level that's being proposed this year because they didn't have the contingencies, then we may be able to look to decreasing it. But it seems that they're making a compelling argument. DR. DOYLE: Well, I'd like to make a clarification. COMMISSIONER HILLER: Sure. DR. DOYLE: The total budget is like you said, four million. However, 1 .4 million of that for the street lighting is Fund 778. So if you really look at the 2.7 million, we're only talking 20 percent reserves, 500,000 in relation to 2.7 million. And the thing is that -- Page 8 September 18, 2014 CHAIRMAN HENNING: Besides the fact you need to take a look at reserves on maintenance. That's -- the question was how much reserves do you have in capital? The question should have been how much total reserves do you have. That wasn't asked. DR. DOYLE: Well there's another 700,000 in the operating account. So that's really 700,000 in the operating but 500,000 in the capital. We have $1.2 million in reserves sitting there. And that doesn't even include Fund 778 which is for the street lighting. COMMISSIONER HILLER: But you're going to distinguish the two reserves. I mean, let me ask you the question with respect to the 700,000 in the operating, because we were talking about capital. In the operating account, how -- what's the justification for the 700,000 reserve? MR. DORRILL: Twofold on the operating side. They have an adopted fiscal policy and, you know, frankly they're successful high net worth retirees who think that we should have cash on hand at the beginning of the year until we receive our first distribution from the Clerk, which is typically not until the week of Thanksgiving. And then they like to have a little, as they refer to it, rainy day fund for unanticipated tropical storm cleanup or, you know, whatever. And they feel that two and a half months of operating cash at the beginning of the year is a fiscally prudent thing to do. But, you know, as I suggested to Dr. Doyle, I think somewhat surprisingly, you know, we have some folks on our board who do not intend to seek reappointment next year, and I encouraged him -- COMMISSIONER HILLER: You should consider running for it. MR. DORRILL: -- to consider. Because, you know, frankly, he has some talent to bring. COMMISSIONER HILLER: I agree with that. MR. DORRILL: And I have left it to him to see if he wouldn't come join us and perhaps serve in a little more direct capacity. Page 9 September 18, 2014 COMMISSIONER HILLER: I think that's a very good recommendation. Mark, what's your position on two and a half months cash reserves for the operating? MR. ISACKSON: My comment there, Commissioners, is look at what you do in the general fund. The same concept, only on a much smaller scale. COMMISSIONER HILLER: Okay, thank you. CHAIRMAN HENNING: I have a question. On our capital funds, I don't remember a contingency capital fund. I remember every project had a certain amount to it and there was no contingency above and beyond that. COMMISSIONER HILLER: All the budgets have -- all our construction budgets have contingency funding built into them. CHAIRMAN HENNING: Each project has a line item, and I know that is speculated to be I think 10 percent more than what the estimates are. Those are what staff puts in there. But, I mean, you take transportation, they have a line item for contingency? I've never seen it. MR. ISACKSON: You have two -- over 200 funds, sir. You have 95 capital funds, and I will venture to guess that 75 percent of those capital funds at the fund level have a set set-aside for reserves in those funds. Not project specific but -- CHAIRMAN HENNING: Not project specific. MR. ISACKSON: Not project specific but just in general in terms of reserve positions in each one of those funds. CHAIRMAN HENNING: Okay. So it's the practice of the county. COMMISSIONER HILLER: And don't we also have that in utilities? I remember looking over some of the budgets that had contingency reserves beyond the projects. Page 10 September 18, 2014 MR. ISACKSON: Yes, ma'am. CHAIRMAN HENNING: Okay. I stand corrected. Item #2C (On the Pelican Bay Services Division Budget Agenda) RESOLUTION 2014-179: A RESOLUTION APPROVING THE SPECIAL ASSESSMENT ROLL AND LEVYING THE SPECIAL ASSESSMENT AGAINST THE BENEFITED PROPERTIES WITHIN THE PELICAN BAY MUNICIPAL SERVICE TAXING AND BENEFIT UNIT — ADOPTED MR. DORRILL: If there are no other questions, then I defer to Mr. Isackson. But I think you have a separate resolution here, and obviously staff recommendation is based on the -- we're simply forwarding the unanimous vote of the advisory board there. COMMISSIONER HILLER: Can I say one last thing? CHAIRMAN HENNING: Yes. COMMISSIONER HILLER: I think it would be a really good idea if, you know, the advisory board come up with a stated policy on these reserves that are not reserves building towards a project, and they should clearly explain just like you articulated with the operations reserve, you know, what they're doing and why. And that policy should be, you know, obviously evaluated annually, but there should be a clearly stated guideline if there isn't already. MR. DORRILL: You know, Dr. Doyle had two other suggestions to make this whole thing a little more understandable. He asked us to improve upon some of the footnotes within the format that you use -- COMMISSIONER HILLER: Yeah. MR. DORRILL: -- and then to produce a more easily understood version of this that citizens could download from our website. And Page 11 September 18, 2014 both of those suggestions are in our work program for the month of October. COMMISSIONER HILLER: I think those are excellent suggestions and really apply to the county as a whole. Because the budget document as presented is very difficult to read, even for us. It's a very difficult presentation. And that holds true for the financial statements. When we received our audit back from the Clerk, we had recommended that a summary analysis be put together of our financial position with key highlights that, you know, could be easily downloaded and read by the public so that they would understand exactly what we're dealing -- MR. DORRILL: We'll be working on that -- COMMISSIONER HILLER: -- with financially on their behalf. MR. DORRILL: -- in October with our budget and finance committee. COMMISSIONER HILLER: I would encourage you to run. DR. DOYLE: Well, as I told Mr. Dorrill, in addition to my medical degree I do have an MBA and a Master's in Public Administration. COMMISSIONER HILLER: That's awesome. DR. DOYLE: And I do like to be a watchdog. COMMISSIONER HILLER: Oh, you're very good. And Leo, if I were you, I'd watch out because he could take your job. Thank you so much. I'm going to make a motion to approve the budget with the recommendation that the advisory board, you know, continue to keep an eye on the reserves, and if an adjustment is, you know, advisable during the course of the year that we can make an adjustment accordingly. COMMISSIONER FIALA: Second. CHAIRMAN HENNING: Motion by Commissioner Hiller to Page 12 September 18, 2014 approve the Pelican Bay special assessment surface -- let me say this, special assessment benefit properties within the Pelican Bay MSTU. And that's a motion to approve the resolution. Second by Commissioner Fiala. Discussion on the motion? (No response.) CHAIRMAN HENNING: All in favor of the motion, signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER NANCE: Aye. CHAIRMAN HENNING: Opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. Now we're going to go to the county's final budget hearing. MR. OCHS: Yes, sir, Mr. Chairman. Mark? Item #1 (On the Board of County Commissioners Budget Agenda) BCC FY2015 TENTATIVE BUDGET PRESENTATION MR. ISACKSON: Thank you, Mr. Chairman and Commissioners. I have some introductory remarks I'd like to make. If you'll bear with me. Mr. Chairman, Commissioners, members of the audience and those watching on Collier television, welcome to the final public budget hearing on Collier County's fiscal year 2015 budget, which runs from October 1, 2014 to September 30th, 2015. Pursuant to Florida Page 13 September 18, 2014 Statutes, Chapter 200 governing the annual truth in millage process, the required advertisement for this hearing was published in the Naples Daily News on Monday, September 15th, 2014. This hearing date was also announced at the first public budget hearing on September 4th, and was contained within Resolution 2014-156 approving the tentative millage rates as the maximum millage rates which was passed by the BCC on July 8th, 2014. Agenda and speaker sign-up slips are available in the hallway. You must register if you wish to address the Board of County Commissioners regarding the county budget, and Mr. Troy Miller, Troy, thank you, will take your speaker slips. Following some introductory remarks regarding tax rates and changes to the tentative budget initially submitted to the Board on July 8th, 2014 and subsequently amended at the first hearing of September 4th, 2014 there will with be an opportunity under agenda Item 1 .0 for public comment. Speakers will be called by name. Item #1A (On the Board of County Commissioners Budget Agenda) DISCUSSION OF FY 2014-15 MILLAGE RATES AND INCREASES OVE THE ROLLED BACK MILLAGE RATES — PRESENTED MR. ISACKSON: Commissioners, Item 1.A on the agenda is the rolled-back discussion. State law requires that the first substantive issues to be discussed are: Number 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 DR 420 forms are being increased. Rolled-back rate is that defined as that tax rate necessary to generate prior year tax revenues, and this tax rate is calculated, not Page 14 September 18, 2014 including taxable values associated with new construction, additions, deletions and rehabilitative improvements. The Board adopted budget guidance for 2015 included a millage neutral position, same tax rate as last year, and for that matter since 2010 for the general fund and the unincorporated area general fund, which together represent over 96 percent of the total aggregate taxes levied across all Collier County taxing authorities for 2015. Within an increasing taxable value environment under a millage neutral policy guidance, the rolled-back rate will be lower than millage neutral. This event occurs in 2015. With the exception of 2014 and 2015, each year beginning in FY 2008 the adopted millage rate has been lower than the rolled-back rate. Had the county levied the rolled-back rate or higher millage rate as the adopted millage rate in fiscal years 2008 through 2013, an additional 89.7 million in ad valorem tax revenue would have been realized. A millage neutral tax rate in 2014 and again as proposed in 2015 under Board adopted budget guidance realizes an additional 15.6 million over the rolled-back rate for the two-year period combined. While taxable value has recovered nicely over the past three years, the tax base still has eroded some 17.9 billion since 2008. As a pure factor of tax base loss, lost levy potential within the general fund based upon the current millage neutral rate is approximately $64 million. Likewise during that same period since 2008 within the unincorporated area general fund, $10 million in lost levy potential occurred by levying the adopted rate as opposed to the rolled-back rate. Recovery of those dollars to fund continued backlog asset and infrastructure replacement/maintenance will represent one of the most important policy decisions faced by future boards. Commissioners, referring to Exhibit 1.A, millage rates for each Collier County taxing authority were established pursuant to budget Page 15 September 18, 2014 guidance. The roster of tax rates adopted by the Board on July 8th represent the maximum property tax rates that can be levied. The Collier County Lighting District MSTU millage rate is .2 per $1,000 of taxable value, which is an increase of 29 percent above the rolled-back rate. And out of an abundance of caution, when we get to agenda Item 1 .F, I'd like for the Board to consider that item separately as it will require a unanimous vote. The cumulative aggregate rolled-back rate for all Collier County taxing authorities, exclusive of debt service, totals 3.9667 per $1,000 of taxable value. The proposed aggregate tax rate for all Collier County taxing authorities, exclusive of debt service, totals 4.1505 per $1,000 of taxable value. This represents an increase of 4.63 percent over the aggregate rolled-back rate and requires a notice of proposed tax increase ad for TRIM purposes. That ad was published in the Naples Daily News on September 15th, 2014. Item #1B (On the Board of County Commissioners Budget Agenda) DISCUSSION OF FURTHER AMENDMENTS TO THE TENTATIVE BUDGET Commissioners, under Item 1.B on your agenda we have a discussion of further amendments to the tentative budget. And before any comment I will just say this: That further amendments to the tentative budget approved on September 4th are contained within separate fund resolutions found under agenda Item 1 .B, Pages 2 to 6. And a summary of those resolutions is listed on Page 1 within your packet. These changes pertain solely to the Board action of September 9th approving the purchase and financing of the Election Supervisor building. Resolutions amending the tentative budget from September Page 16 September 18, 2014 4th are prepared at the fund level and no changes to the roster of millage rates approved at the September 4th budget hearing are proposed. Mr. Chairman, that moves us to Item 1.0 on the agenda which is public comments and questions. CHAIRMAN HENNING: Let's go to board questions or comments on the budget. Any comments? (No response.) CHAIRMAN HENNING: I do have a question. The allocation of impact fee loan for the general government impact fee and just a loan, I mean, the loan was recognized -- no, actually we need to do a document recognizing the source, don't we? MR. ISACKSON: Sir, are you talking about the election supervisor building? CHAIRMAN HENNING: Yes. MR. ISACKSON: I believe everything that I need to accomplish the Board objective was taken care of at the September 9th hearing. Now we've just incorporated that action of the board into this particular document. CHAIRMAN HENNING: What part of that is expansion, therefore requiring a loan to the general government impact fee? MR. ISACKSON: Everything that's coming out of the general fund, sir, will most likely be transitioned through Fund 390, as you said, which is a governmental facilities impact fee fund. CHAIRMAN HENNING: Is it a loan? MR. ISACKSON: Yes, sir. CHAIRMAN HENNING: Okay. I'm not sure -- I don't think any of that is expanded services. MR. OCHS: It's additional square footage, Commissioner. CHAIRMAN HENNING: Well, it's additional square footage, Page 17 September 18, 2014 but you're replacing it with rented square footage. I mean, I think we need an instrument on a future agenda to really take a look at that. MR. OCHS: Okay. CHAIRMAN HENNING: Is there any objection to that? COMMISSIONER FIALA: Well, I have a question then. CHAIRMAN HENNING: Yes. COMMISSIONER FIALA: But we're still voting on this today, correct? CHAIRMAN HENNING: Yeah. No, I mean, Commissioner, over the years we have recognized loans to impact fees, because there's not enough impact fees to cover it. In my mind there's no expansion of service. Even the -- so I think that we need to have an agenda item in the future to really explain that. COMMISSIONER FIALA: To explain it. But we can vote on this today and approve it? CHAIRMAN HENNING: Oh, absolutely. COMMISSIONER FIALA: Okay, fine. Let me ask one last question. Is rented space considered -- I mean, if-- I didn't think it would be considered space that we already own, so anything that we have above and beyond what we own here would truly be an expansion. CHAIRMAN HENNING: It could be. And, you know, we need that legal sufficiency test on that. My opinion. Leo, can we do that? MR. OCHS: Yes, sir, we -- CHAIRMAN HENNING: Do you have any problem with that? MR. OCHS: No, we'd be happy to bring back a separate executive summary that takes you through the paces on that transaction. CHAIRMAN HENNING: Okay, great. Anything else? (No response.) Page 18 September 18, 2014 CHAIRMAN HENNING: Public comments? Item #1C (On the Board of County Commissioners Budget Agenda) PUBLIC COMMENTS MR. MILLER: We have no registered public speakers, Mr. Chairman. CHAIRMAN HENNING: Okay. Mark? Item #1D (On the Board of County Commissioners Budget Agenda) RESOLUTION 2014-180: A RESOLUTION TO AMEND THE TENTATIVE BUDGETS — ADOPTED MR. ISACKSON: Mr. Chairman, Item 1.D is a resolution to amend the tentative budgets. My comments, Commissioner, was under Item 1 .D you will find the required resolution which amends the tentative budget passed by the Board at the first public budget hearing of September 4th. This action will include all resolutions contained under Item 1 .B, Pages 2 to 6. The appropriate motion is to approve the resolution amending the tentative budgets. CHAIRMAN HENNING: Is there a motion to do so? COMMISSIONER HILLER: Sure. All -- these are all the budgets or just Pelican Bay's? MR. ISACKSON: Ma'am, it's just the items that were contained under your budget changes under Item 1.D on your tab. You've already taken care of the Pelican Bay portion of it. COMMISSIONER HILLER: Okay. So that's completely done. MR. ISACKSON: Yes. This is essentially the action pertaining Page 19 September 18, 2014 to the financing and purchase of the Supervisor of Elections building. Those are the changes from the September 4th hearing. COMMISSIONER NANCE: So moved, Mr. Chairman. CHAIRMAN HENNING: Thank you, Commissioner Nance. Is there a second to Commissioner Nance's motion? (No response.) CHAIRMAN HENNING: I'll second that motion. Discussion on the motion? (No response.) CHAIRMAN HENNING: All in favor of the motion, signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER NANCE: Aye. CHHAIRMAN HENNING: Any opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. Now we go to the millage resolution? Item #1E (On the Board of County Commissioners Budget Agenda) 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 BY MARK ISACKSON MR. ISACKSON: Well, Commissioners, if you don't mind, we have Item 1 .E there which is my public reading of the rolled-back rate and essentially the roster of millage rates that you have prior to your Page 20 September 18, 2014 action on the millage rates and on the adoption of the adopted budget. CHAIRMAN HENNING: Okay. MR. ISACKSON: So if you don't mind, sir, I'll launch into my reading. CHAIRMAN HENNING: Please do. MR. ISACKSON: General fund, Fund 001, the proposed millage rate, 3.5645; the rolled-back millage rate, 3.4031 . That's a percent change from the rolled-back rate of 4.74 percent. Water Pollution Control, Fund 114. Proposed millage rate, .0293; the rolled-back millage rate, .0280. There's a percent change from the rolled-back rate of 4.64 percent. The Unincorporated Area General Fund, Fund 111. Proposed millage rate, .7161; the rolled-back millage rate .6858. Percent change from the rolled-back rate of 4.42 percent. The Golden Gate Community Center, Fund 130. Proposed millage rate .1862; the rolled-back millage rate, .1790. Percent change from the rolled-back rate, 4.02 percent. Victoria Park Drainage, Fund 134. The proposed millage rate, .0443; rolled-back millage rate, .0443. No change from the rolled-back rate. Naples Park Drainage, Fund 139. Proposed millage rate, .0079; rolled-back millage rate, .0079. No change from the rolled-back rate. The Vanderbilt Beach MSTU, Fund 143. The proposed millage rate, .5000; the rolled-back millage rate, .4770. Percent change from the rolled-back rate, 4.82 percent. The Isles of Capri Fire MSTU, Fund 144. The proposed millage rate, 2.0000; the rolled-back millage rate, 1 .9163. Percent change in the rolled-back rate, 4.37 percent. Ochopee Fire Control MSTU, Fund 146. Proposed millage rate, 4.0000; rolled-back millage rate, 3.9693. Percent change of rolled-back rate, .77 percent. Page 21 September 18, 2014 Collier County Fire, Fund number 148. Proposed millage rate, 2.0000; rolled-back millage rate, 1.9281. Percent change from the rolled-back rate, 3.73 percent. The Goodland/Horr's Island Fire MSTU, Fund 149. Proposed millage rate 1 .2760; the rolled-back millage rate 1 .2355. Percent change from the rolled-back rate, 3.28 percent. Sable Palm Road MSTU, Fund 151. Proposed millage rate, .1000; the rolled-back millage rate, .0784. Percent change from the rolled-back rate, 27.55 percent. The Golden Gate Parkway Beautification MSTU, Fund 153. Proposed millage rate, .4280; the rolled-back millage rate .4280. No change from the rolled-back rate. The Lely Golf Estates Beautification. Fund 152. Proposed millage rate 2.0000; the rolled-back millage rate, 1.9242. Percent change from the rolled-back rate, 3.94 percent. The Hawks Ridge Storm Pumping MSTU, Fund 154. Proposed millage rate .0458; the rolled-back millage rate .0458. No change from the rolled-back rate. Radio Road Beautification, Fund 158. Proposed millage rate, .3096; rolled-back millage rate, .3096. No change from the rolled-back rate. Forest Lakes Roadway and Drainage MSTU, Fund 159. Proposed millage rate, 1 .1022; the rolled-back millage rate, 1.0774. Percent change from the rolled-back rate, 2.3 percent. Immokalee Beautification MSTU, Fund 162. The proposed millage rate, .9172; the rolled-back millage rate .9172. No change from the rolled-back rate. Bayshore Avalon Beautification MSTU, Fund 163. Proposed millage rate, 2.3604; the rolled-back millage rate, 2.3005. Percent change from the rolled-back rate, 2.6 percent. The Haldeman Creek Dredging, Fund 164. Proposed millage rate, Page 22 September 18, 2014 .7348; the rolled-back millage rate, .7071. Percent change from the rolled-back rate, 3.92 percent. Rock Road MSTU, Fund 165. Proposed millage rate, 3.0000; rolled-back millage rate, 2.9440. Percent change from the rolled-back rate, 1.90 percent. Radio Road East MSTU, Fund 166. Proposed millage rate, .2401. The rolled-back millage rate, .2151. Percent change from the rolled-back rate, 11 .62 percent. Forest Lakes Debt Service, Fund 259. Proposed millage rate, 2.8978. The rolled-back millage rate, 2.6345. Percent change from the rolled-back rate, 9.99 percent. The Radio Road East Debt Service, Fund 266. Proposed millage rate, .2408; rolled-back millage rate, .2046. Percent change from the rolled-back rate, 17.69 percent. Collier County Lighting, Fund 760. Proposed millage rate, .2000; rolled-back millage rate, . 1552. Percent change from the rolled-back rate, 28.87 percent. Pelican Bay MSTBU, Fund 778. Proposed millage rate, .0857; the rolled-back millage rate, .0828. Percent change from the rolled-back rate, 3.5 percent. Finally, Commissioners, the aggregate millage rate: Proposed millage rate, 4.1505; the rolled-back millage rate, 3.9667. Percent change from the rolled-back rate is 4.63 percent. Item #1F (On the Board of County Commissioners Budget Agenda) RESOLUTION 2014-181 : THE ADOPTION OF THE RESOLUTION SETTING MILLAGE RATES. NOTE: A SEPARATE MOTION IS REQUIRED FOR THE DEPENDENT DISTRICT MILLAGE RATES; AND A SEPARATE MOTION IS REQUIRED FOR THE REMAINING MILLAGE RATES — Page 23 September 18, 2014 MOTION TO APPROVE THE DEPENDENT WATER POLLUTION CONTROL DISTRICT MILLAGE RATES — APPROVED; MOTION TO APPROVE THE REMAINING MILLAGE RATES WITHOUT THE LIGHTING DISTRICT — APPROVED; MOTION TO APPROVE THE LIGHTING DISTRICT MILLAGE RATE — APPROVED; MOTION ADOPTING THE RESOLUTION SETTING THE MILLAGE RATES — ADOPTED MR. ISACKSON: Commissioners, before you vote, if you don't mind, let me -- on Item 1 .E on your agenda -- 1 .F, excuse me, let me make some introductory remarks. Commissioners, you're required to adopt a separate motion for the adoption of the dependent millage rates and then a motion for the remaining millage rates. In addition, out of an abundance of caution, it is requested that a separate motion also be culled out for the Collier County Lighting District, which is two mills and will require a unanimous vote. CHAIRMAN HENNING: The dependent districts is the Isles of Capri, Ochopee and what else? MR. ISACKSON: Well, Commissioner, it's really only the water -- by definition, by state definition it's really only the Water Pollution Control District. CHAIRMAN HENNING: And that's a dependent -- MR. ISACKSON: That's what we term in the DR 420 Form as a dependent district. The rest of them are MSTUs. CHAIRMAN HENNING: Okay. Entertain a motion to adopt the Water and Sewer -- COMMISSIONER HILLER: Motion to approve. COMMISSIONER NANCE: Second. MR. OCHS: Water Pollution Control. CHAIRMAN HENNING: Water Pollution Control millage. Page 24 September 18, 2014 Motion by Commissioner Hiller, second by Commissioner Nance. Discussion on the motion? (No response.) CHAIRMAN HENNING: Seeing none, all in favor of the motion, signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER NANCE: Aye. CHAIRMAN HENNING: Opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. And entertain a motion to approve the remainder of the funds. COMMISSIONER FIALA: Motion to approve. COMMISSIONER HILLER: Do we not have to do it separately? Don't we have to do the Lighting District separate? MR. ISACKSON: Well, if you could take this motion, which would be a motion to approve all the remaining funds with the exception of the Lighting District and then come back to the Lighting District, that would be appreciated. COMMISSIONER FIALA: Okay. Motion to approve this item with the exception of the Lighting District. COMMISSIONER HILLER: Second. CHAIRMAN HENNING: Motion by Commissioner Fiala, second by Commissioner Hiller. Discussion on the motion? (No response.) CHAIRMAN HENNING: Seeing none, all in favor of the motion, signify by saying aye. COMMISSIONER FIALA: Aye. Page 25 September 18, 2014 CHAIRMAN HENNING: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER COYLE: Aye. COMMISSIONER NANCE: Aye. CHAIRMAN HENNING: Opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. MR. ISACKSON: And then finally, Commissioners, a motion on the Lighting District which is Fund 760. COMMISSIONER FIALA: Motion to approve the Lighting District. COMMISSIONER HILLER: Second. CHAIRMAN HENNING: Motion by Commissioner Fiala, second by Commissioner Hiller. This has to be unanimous. MR. ISACKSON: Yes, sir. CHAIRMAN HENNING: That's a 5-0 or 5 -- MR. ISACKSON: Unanimous vote of those who are sitting up at the dais. CHAIRMAN HENNING: Of the Board present. Four votes. COMMISSIONER NANCE: And if we don't, we have to turn the lights out, I guess. COMMISSIONER HILLER: What happens if there's not a unanimous vote? MR. ISACKSON: You don't want to know. CHAIRMAN HENNING: Does that mean we're going to keep them on year round? MR. OCHS: Yes, sir. CHAIRMAN HENNING: All in favor of the motion, signify by saying aye. COMMISSIONER FIALA: Aye. Page 26 September 18, 2014 CHAIRMAN HENNING: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER COYLE: Aye. COMMISSIONER NANCE: Aye. CHAIRMAN HENNING: Opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. And that's adopting -- a resolution adopting the millage rates to be levied for '14, '15? Item #1G (On the Board of County Commissioners Budget Agenda) RESOLUTION 2014-182: A RESOLUTION TO ADOPT THE FINAL BUDGET BY FUND. NOTE: A SEPARATE MOTION IS REQUIRED FOR THE DEPENDENT DISTRICT BUDGETS; AND A SEPARATE MOTION IS REQUIRED FOR THE REMAINING BUDGETS — MOTION TO APPROVED THE DEPENDENT DISTRICT BUDGET — APPROVED; MOTION TO APPROVE THE REMAINING BUDGETS — APPROVED; MOTION ADOPTING THE FINAL BUDGET BY FUND — ADOPTED MR. ISACKSON: That's what you just did, sir, yes. And then finally, sir, a little bit easier, Item 1.G is the resolution to adopt the final budget by fund. And again, we'll need two separate motions there, one for the dependent district budgets and then again a final motion for all the remaining budgets. COMMISSIONER HILLER: Just to clarify, when you say the final budget by fund, you're talking about under the Board of County Commissioners or including all the Constitutionals? What are we treating as dependent district budgets in this case? MR. ISACKSON: Dependent district, ma'am, once again is only Page 27 September 18, 2014 the Water Pollution Control District. COMMISSIONER HILLER: And then for the remaining budgets it's all budgets including the Constitutionals? MR. ISACKSON: Well, yeah, you'll see -- you have a roster, ma'am, under your final budget. COMMISSIONER HILLER: I just want to understand what we're doing in this motion. MR. ISACKSON: Remember, you've got significant transfers that go from the general fund to the Constitutionals. COMMISSIONER HILLER: So you're -- MR. ISACKSON: Those are included also. COMMISSIONER HILLER: Okay, so we're essentially treating the transfers in our final budget as -- by approving our final budget, which incorporates the transfers to the Constitutionals, we're -- MR. ISACKSON: Yes. COMMISSIONER HILLER: I understand. So my point being, no separate motion on the Constitutionals. MR. ISACKSON: No, none required. COMMISSIONER HILLER: I understand how you're doing that. CHAIRMAN HENNING: Okay, is there a motion to approve the Water Pollution Control -- COMMISSIONER FIALA: District. COMMISSIONER HILLER: Motion. MR. ISACKSON: Your dependent district. COMMISSIONER HILLER: Motion to approve the dependent district budget. COMMISSIONER FIALA: I'll second that. CHAIRMAN HENNING: Motion by Commissioner Hiller, second by Commissioner Fiala. All in favor of the motion, signify by saying aye. COMMISSIONER FIALA: Aye. Page 28 September 18, 2014 CHAIRMAN HENNING: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER NANCE: Aye. CHAIRMAN HENNING: Any opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. Now, is there a motion to approve the balance of the tentative -- or the balance of the budget for 2014-2015? COMMISSIONER NANCE: So moved. COMMISSIONER FIALA: Second. CHAIRMAN HENNING: Motion by Commissioner Nance, second by Commissioner Fiala. Discussion on the motion? (No response.) CHAIRMAN HENNING: All in favor of the motion, signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER NANCE: Aye. CHAIRMAN HENNING: Motion carries unanimously. COMMISSIONER HILLER: I have an explanation on my vote. CHAIRMAN HENNING: Wait a minute. Opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. Go ahead. COMMISSIONER HILLER: Yeah, I make this motion -- or excuse me, I vote in the affirmative. However, I do so with a caveat that I don't agree with the Clerk's budget. However, the Clerk's budget is funded monthly. So after I've had time to analyze the details of the Page 29 September 18, 2014 budget with staff and review the materials sent by the Clerk, as needed I will bring proposed amendments in the future to the Clerk's budget. However, I'm voting for what is being proposed today in the affirmative. COMMISSIONER FIALA: Is that something that can be done? COMMISSIONER HILLER: Absolutely. CHAIRMAN HENNING: Is there any further business? COMMISSIONER FIALA: I just want to make sure that you can do that. But there's not a problem with that? COMMISSIONER HILLER: We amend. I bring back a motion to amend. MR. KLATZKOW: You can bring that forward again, yes. COMMISSIONER FIALA: Okay. COMMISSIONER HILLER: Thank you. CHAIRMAN HENNING: I just want everybody to be aware they might see me out on the boat this weekend with an elected official. COMMISSIONER FIALA: I'm not going after all. Excuse me, just a little levity. CHAIRMAN HENNING: Commissioner Fiala has declined. And because of the Sunshine Law, I think it's a good thing. So any other business? (No response.) CHAIRMAN HENNING: We are adjourned. ***** Page 30 September 18, 2014 There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 5:50 p.m. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL OM HENNING, C IRMAN ATTEST: DWIGHT BLOCK, CLERK est as to,chairman's •' signature only. -"" These minutes approved by the Board on ID I Q,011-1-- as presented ✓ or as corrected Transcript prepared on behalf of Gregory Court Reporting, Incorporated by Cherie' R. Nottingham, CSR. Page 31