Loading...
BCC Minutes 08/28/1989 B Naples, Florida, August 28, 1989 LET IT BE REMEMBERED, that the Board of County Co~miaaloners 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 9:O0 A.M. in BUDGET WORK~HOP SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Burr L. Saunders VICE-CHAIRMAN: Max A. Hesse, Jr. Richard $. Shan&han Michael J. Volpe Anne Goodnight ALSO PRESENT: John Yonkosky, Finance Director; Maureen Kenyon, E/lie Hoffman, and Annaltese Kraft, Deputy Clerks; Nell Dorrtll, County Manager; Tom Olltff, Assistant to the county Manager; Ken Cuyler, County Attorney; Lorl Zalka, Budget Director; Jennifer Pike and Jean Gansel, Budget Analysts; Start Lttstnger, Growth Management Director; Guy Carlton, Tax Collector; Sam Coldtng, Property Appraiser; Don Hunter, Sheriff; Kevtn O'Donnell, Public Services Administrator; George Archibald, Transportation Services Administrator; Frank Brutt, Community Development Administrator; Mike McNees, Utilities Finance Director; John Boldt, Water Management Director; Mike Arnold, Utilities Director; Martha Skinner, Social Services Director; Dr. Polkowskt, Public Health Unit Director; Roger Evans, Business Manager of the Health Department; Ken Pineau, Emergency Management Director; and Leo Ochs, Administrative Services Administrator. Page AUGUST 28, 1989 AGENDA OVERVIEW CONTRACT AGENCIES DEBT SERVICE CAFITAL OUTLAY SHERIFF (CONTINUED TO 8/30/89) PUBLIC COMMENT RE DATA PROCESSING TAX COLLECTOR PROPERTY APPRAISER BOARD OF COUNTY COMMISSIONERS COUNTY ATTORNEY OTHER GENERAL ADMINISTRATION COUNTY MANAGER'S OFFICE BUDGET COUNTY MANAGER FOR OFFICE OF MANAGEMENT AND BUDGET Tape #l Commissioner Saunders indicated that the purpose of this meeting is to hold a budget workshop in which the County staff will explain to the Commission the needs of the various departments for the upcoming fiscal year. Ne stated that he would suggest that before the actual workshop begins, there be comments from the public. Mr. 3oe Christy, Vice President of Marco Island Taxpayers Association, stated that this organization represents over 1,O00 tax- payers. ~{e stated that after reviewing the budget, there has been an average increase of 22.8~ a year since the 1985-86 budget. He stated that if the total budget Is reviewed less the enterprise activity the Paae 2 AUGUST 28, 1989 budget has increased over 20~ a year. He stated that the increase for this year less the enterprise activities ts 34.8~, noting that with an increase of 20~ per year, the budget will double In four years which means that the source of funds must double in that same year period which Is property taxes, sales tax, Gasoline tax, borrowing and ser- vice fees. He indicated that the Marco Island Taxpayers Association feels that this type of increase Is unacceptable and ts requesting that the Board pass an ordinance that provides that the growth of the County budget will not increase more than 3~ a year plus Inflation. He Indicated that he ts suggesting that this Issue be put on the ballot this fall to see If the voters would support such a budget limitation. He Indicated that it may be necessary for them to cir- culate a petition requesting a referendum to determine if the limita- tion and growth for the County budget is supported. He stated that he feels that the County can support the level of service that is now available with a budget limitation. He noted that the 20% Increase per year over the past five years is the result of growth in the County's population and growth should pay for growth Instead of the taxpayers subsidizing. Commissioner Saunders stated that this Increase is a propossd Increase and is the maximum pursuant to law that this Commission can Impose, adding that he would suspect that it will be cut somewhat. He stated that with regards to specific questions, the Budget Director will be available to answer those questions, adding that with regard to a referendum, nothing can be done this date because this meetinG ts a workshop and no action can be taken. BUDGET OI~.RVIEI~ Budget Director Zalka stated that the total budget increase la 27.6% which ts a $267 million budget which includes In addition to the operating budget, reserves, capital outlay, and the improvement districts which are requested by each area of the County. She stated that the overall budget includes many things that are specifically requested by the public. She indicated that only 21.4~ of the budget Pa~e 3 AUGUST 28, 1989 Is funded by property taxes and most property taxes are part of the County-wide rate which is 4.6157 mills. She stated that this County- wide rate is the same as last year, but due to increases in property value assessments, the County-wide tax rate increase overall over the rollback is 12.9% which includes the General Fund as well as the one mill for capital outlay. She noted that in addition to the County- wide rate, there are 44 MSTD'S, which is a municipal service taxing district. She reported that this covers street lighting, beautifica- tion districts, and improvements districts like the Marco Beach Renourishment Program. She stated that if all the millage rates are added together that are associated with those districts, the aggregate tax rate is determined, which is going up 15~ over the rollback rate. She stated that the tax increases are devoted to the three high priorities of the County; the environment, capital construction, and improved service and efficiency. She noted that if there are any changes, the Board can direct Staff to make the necessary changes based on the detailed work at these workshops, but no changes will be adopted officia]ly until the public hearing. She indicated that the two public hearings will be on Wednesday, September 13, 1989, and Monday, September 25, 1989, at 7:00 P.M. in the Boardroom. CONTRACT AGENCIES Budget Analyst Gansel stated that the first item to discuss Is Contract Agencies and the summary is on Page B-50 of the budget book. She stated that the total recommended funding for non-statutory contract agencies is $168,000 which is 1% of the 1989 General Fund. She indicated that this summary page shows $163,000 and there is an additional $5,000 that is budgeted in the Public Service Administration budget which will be used for discretionary funding which allows some additional funding in case an organization comes during the middle of the year and requests funding. Commissioner Saunders questioned if the $5,000 has been spent for this fiscal year, to which Public Services Administrator O'Donnell replied affirmatively. He indicated that there is about $86.00 Page 4 AUGUST 28, 1989 remaining for this fiscal year. He noted that $3,500 of the $5,000 is usually allocated to the State Fair and $300 to $500 for Project Graduation. He noted that there is about $1,000 left that is dis- bursed to other groups during the year. Budget Analyst Gansel stated that in the past agencies have made requests to both Staff and to the Commissioners, adding that no one had any guidelines as to what organization should be funded and what level it should be funded at. She stated that the ones that requested funding from the Board were the agencies that received funding. She noted that two years ago, Staff did a study and set up criteria for funding agencies, adding that the funding request comes through Staff and the amount of money to be allocated to outside agencies has been set at 1% of the prior year General Fund budget. Public Services Administrator O'Donnell indicated that he reviews the budgets for the contract agencies and the discretionary money is operated in the same form as a grant allocation. He stated that it is then reviewed by his office and if it Is funded, there is a formalized contract that the Commission acts upon which requires monthly reports and a quarterly allocation. Commissioner Volpe questioned if the contract agencies are eli- gible for United Way, to which Mr. O'Donnell stated that several of the agencies have applied with United Way and have been funded by them. He stated that when the documentation ts submitted, they have to list the other forms of revenue that they have. In answer to Commissioner Hasse, Mr. O'Donnell stated that the Shelter for Abused Women is Just getting underway and the doors were opened in 3une. He noted that funding was requested last year and they made their first draw this year. He noted that because this was a new agency, it was funded at a lower amount than requested, noting that this year there was a request for around $19,000 and that is what is being recommended. Commissioner Saunders stated that the only increase this year is for the Shelter for Abused Women and a new YECH training area. He Pa~e § AUGUST 28, 1989 stated that the money ts Identical to what It was In 1988-89. Mrs. Bea Harper, President of Naples Alliance for Children, stated that Naples Alliance for Children was established tn 1986 for pro- motlng advocacy on behalf of children and families In this community. She stated that in June 1988, NAFC professional network was formed for purposes of coordinating social agencies to develop a communication network to more efficiently evaluate human services, seek out defi- ciencies and try to help with the dally frustrations of both social workers and clients. She stated that soon after the network formed it became obvious that one of the most serious flaws In the community system was the fragmentation and the lack of coordination and communication. She noted that there are many agencies working hard and committed to helping clients but are lacking communication with each other. She stated that they placed on their priority list an establishment of a community information and referral center. She stated that Information and referral ts a primary channel of access to human services In a local community, an esse~lttal communication link between people needing services and those providing them. She stated that she has received a gift of $25,000 from one Individual with the stipulation that if she ts successful in obtaining funds from the County, the City, and the United Way, It can be used for an infor- mation and referral center. She stated that sometimes tn order to get things accomplished, exceptions have to be made. In answer to Commissioner Volpe, Mrs. Harper stated that she has an appointment with United Way tn the morning and she has not approached the City at this time as she was waiting for the County to take the leadership. Commissioner Saunders suggested that Mrs. Harper make application to the County for funding, as he feels that this ts a good idea. He indicated that his concern ts that there needs to be a spending plan, adding that he would be supportive of this type of a cente~. He stated that there is work that needs to be done before the County can support this, and he would suggest that perhaps in the 1990-1991 Page 6 AUGUST 28, 1989 budget there could be some funding available if the concerns have been resolved. Commissioner Volpe indicated that he feels that there ~s a lot of duplication and overlapping of services, adding that he feels that there needs to be communication between these agencies to find out what they are doing before something like this is set up for th~ public. Mr. Steve Hix, of the Development Department of the Salvation Army's Florida Divisional Headquarters in Tampa, stated that home- lessness is an issue that has arrived tn Collier County and ts an issue that the Salvation Army has been working on since 1865. He stated that the Salvation Army would like to build a facility that will serve homeless families and single women, noting that last year, he had 65! requests for shelter and 81% came from families of single women. He noted that they could only help about one-third of those cases. Mrs. Hope Johnson, Director of Social Services of the Salvation Army for Collier County, stated that every agency that she has con- tacted tn this County has been wi/ling to cooperate. She stated that the Salvation Army serves a lot of individuals on an emergency basis. She noted that tn Collier County, the Salvation Army deals mostly with people that have come from settled environments and run into emergen- cies. She noted that there is a great need to build a facility that will house these people and feed and cloth them until they can get on their feet. Mrs. Jane Pullman, member of the Salvation Army advisory commit- tee, stated that the Salvation Army ts the only place in Naples where children can come after school, have a free snack and good care until their parents arrive, at absolutely no charge. She noted that there is a camp program tn the summer and there Is no charge. She noted that they can only support about one-fourth of the people that ask for assistance and about three-fourths of the people that ask for assistance are residents of Collier County. She stated that the Pag~ ? AUGUST 28, 1989 building that is being proposed will house these people until they get on their feet, will have an administrative office, and a thrift shop. She noted that they already have 6 acres of land on Airport Road. She indicated that they do not receive help from United Way and she is asking for support from the County. Mr. Hix indicated that they originally put in a request for $250,000 and would be willing to accept $168,000 or any portion thereof. He indicated that they have a total goal of $2 million which will build the family service center and will pay for the land and the improvements on the land as well as the administrative wing and the thrift store. He stated that they would lake to get the family ser- vice center up first, noting that they have raised $600,000 of the $2 million. He indicated that if they can raise another $600,000 along with in-kind contributions it will get the building built. Ms. Vickie Todd, Executive Director of Hospice of Naple,~, stated that one-third of her working time is networking with other people, noting that it makes her unhappy that the public is not awarc of this. She indicated that with regards to an information and referral center, there is very little overlap. She reported that it takes very litule time to make contacts and get help frum other agencies. She indicated that all the human services people have put together a patchwork of services that will meet the clients' needs. Budget Analyst Gansel stated that the contract agencies that have been discussed are agencies that the County has no statutory require- ments to fund, adding that there are two additional agencies that have statutory requirements. She indlcated that the David Lawrence Center is one of these agencies which is on Page B-39. She stated that Staff is recommending a 6~ Increase in the overall budget, noting that there are two sections of their budget, operating and contribution. She stated that the operating expenses include $24,500 which are for meals and drug and alcohol rehabilitation programs in Immokalee. She stated that the Sheriff provides the meals and David Lawrence pays the Sheriff for those meals. She noted that there is also $1,500 mileage AUGUST 28, 1989 reimbursement to transfer clients to the State Hosptta! in Arcadia. She indicated that the large portion of their budget which ts 8664,600 ts a contribution which supports all the state contracted programs for mental health in Collier County. She indicated that on Page B-40 under the General Fund, there is the budget for the Public Health Department. She stated that the overall increase in this budget As 2.§~ for current services. She indicated that Staff ts recommending a funded expanded program for Public Health of 849,000 for maternal and child services. She stated that the funding amount of this expanded program equals a grant that they anticipate receiving for this program, therefore, there is no additional County money with the expanded program. Dr. Polkowski, Public Health Director, distributed Information regarding indigent births and substance abuse newborns in Collier County, noting that between 3anuary and 3une there were 38 indigent newborns from Collier County that were transferred to regional cen- ters. She stated that these 38 newborns represented 68~ of all Collier transfers. She reported that the remaining 32~ were prlvate patients. She indicated that 55% of the 38 newborns were low birth rate babies. She reported that the average bill per baby ls $46,000 if they are transferred to a regional center and the median bill Is $18,000. He indicated that the average bill from 1987 through 1989 was $32,000. She stated that the long-range cost for some newborns ts about $50,000 per year because they have to be institutionalized. She indicated that there is also special education needs involved. She noted that the increase for the greater Naples indigent births was 117% and for Immokalee it was 9~. She stated that as of last week, there were 70 substance abuse newborns tn Collier County reported to the Health Department. She indicated that 54~ of the mothers with no prenatal care had low birth weight babies; 31% of the mothers with 5 or fewer clinic visits had low birth weight babies; and 11~ of the mothers with 6 or more clinic visits had low birth weight bables. She stated that because of the increasing number of patients, ther~ has AUGUST 28, 1989 been difficulty accommodating them in the clinic. She stated that there will be increased revenues from the State, but the need is much greater than the revenues that will be received. She stated that the specific request is for $§00000 which is a little more than the median cost of two babies. Commissioner Saunders questioned where this money would come from if it was to be considered, to which Budget Director Zalka stated that it would have to come out of the General Fund reserves. Commissioner Goodnight indicated that she would like to wait for the wrap-up session before any final decisions are made, adding that the $§0,000 is high priority as far as she is concerned. Commissioner Saunders stated that with regards to the contract services, he would like to see the Commission taking the $50,000 out of reserves for Dr. Polkowskl's expanded request. He stated that as far as the request for the information referral center and the Salvation Army, there is no information needed before any money could be allocated. He stated that the task force for the homeless should review the plans of the Salvation Army and after Staff ia comfortable with both these organizations, there could be some money allocated from the General Fund reserve during the year. Commissioner Hasse stated that all of these requests have to be prioritized and should be decided at the wrap-up session. Commissioner Volpe agreed with Commissioner Hasse, adding that there are a lot of agencies that need additional money. Commissioner Saunders stated that there seems to be a majority consensus that $50,000 should be added to the wrap-up list for expanded maternal child services. ***** Recess: 10:35 A.M. - Raconvened: 10:45 A.M. &t which ti~e Deputy Clerk Half.an replaced Deputy Clerk Kenyon eases Tape ,2 DEBT S~,RVICE Budget Analyst Gansel referred to the book of changes, Page E-11, advising that the change between the original proposal and the sum- Page 10 AUGUST 28, 1989 mary page for debt service is a new fund: the North Naples Roadway Debt Service Fund. She noted that none of the other funds have changed. She indicated that there are 8 debt service funds and 3 road assessment related funds. She reported that the majority of the debt service funds are on-going expenses to pay back borrowed money for completed or nearly completed projects, however, included in this year's budget are two new funds and an expansion of an existin~ fund. She referred to Page E-7, in the original proposal, Fund 212 - Gas Tax Revenue Bonds, noting that there is an expanded service program listed. She advised that the purpose of the expansion is to borrow $10 million for road construction, and to pay back the issue with on-going tax revenues. She explained that the construction budget for this bond issue is in the Road Construction Fund and will be discussed with the Capital Improvements. Mrs. Gansel referred to Page E-6 of the original proposal, Fund 207, Marco Island Beach Renourlshment Fund, and noted that this ts a new fund to pay back the $5 million bond issue for the Marco Island Beach Restoration Project. She indicated that ad valorem taxes from the effected property owners is the revenue source for this bond issue. She advised that the construction project will be discussed with the Improvement District budgets. Mrs. Gansel called attention to the book of changes, Page E-8A, and stated that this is the debt service for the bond issue which was approved by the Commission on July 18th, noting that special assessments will be the revenue source to pay back the bond issue. CAPITAL OUTLAY Budget Analyst Pike referred to Page D-6! of the tentative budget, Capital Revenue Fund 196, noting that this is where the ! mill ad valorem revenue is budgeted. She indicated that the funds are distri- buted from that fund to the appropriate Capital funds where the money is budgeted for the various projects. She advised that the bottom of the page reflects projects that are proposed to be funded by sales tax. She indicated that after a reuiew of the projects that had been Page AUGUST 28, A989 submitted to be funded by the A mill, it was determined that there are not adequate funds, therefore, it is proposed to place a sales tax referendum on the ballot. She stated that the 3 year sales tax reve- nue has been included in the budget. County Manager Dorrill stated that there needs to be a very thorough discussion of the Capital Improvements this year since this is the major portion attributable to the increase An spending, and it is being driven by the Growth Management Plan. He indicated that what is before the Commission, is a "band aid" solution to what Is going to be a major problem for the community, and the Finance Committee has also prepared a 5 and 10 year look at total Capital needs, and a much larger proposal involving the potential 7th cent sales tax. In answer to Commissioner Volpe, Ms. Pike advised that 85.8 million is to be collected An the last three months of this year County Manager Dorrill advised that the potential ?th cent is baaed on the next regular General Election, which will be the primaries tn June, 1990. Growth Management Director Ltteinger stated that the budget docu- ment was finalized priol, to the CIE document being finalized, end noted that the needs relating to the Growth Management Plan in main- taining concurrency exceed a three year sales tax. He explained that the dollar amount for projects exceed~ the amount in the budget docu- ment. Ms. Pike referred to Debt and Capital, Page E-13. She advised that Fund 301 ts presented on this p~ge to account for all facility construction capita/ projects, noting that there iea 28.8~ Increase in FY 90. She indicated that there is a list of projects at the bot- tom of this page, and those with CIE project numbers, beginning with 30! are those projects which are included in the Capital Improvement Element. Ms. Pike called attention to Page E-14, and indicated that this lists the 7th cent sales tax funded projects. County Manager Dorrill noted that when the tentative budget was Page 12 AUGUST 28, 1989 put together in May, and the information that he had et that time, indicated that in order to balance the budget, three years of sales tax revenues were needed or there would be serious capita/ problems. He explained that since that time, and primarily due to local roads, there is an additional $30 million identified in order to meet the road capacity. He indicated that unfunded state roads and affordable housing initiatives have also been Identified as part of that program. He advised that as part of the annual update to the Growth Management Plan as it effects concurrency, there may be moratorium type issues as they involve state roads, and if the Commission desires to assume responsibility for state roads, those costs have been identified, and they will be disclosed as a result of Option "A "and Option "B" ~ni- tiative involving the sales tax. Ms. Pike advised that Page E-15, Fund 304 relates to what has been budgeted for the dredging of Wiggins Pass. She explained that the revenue sources are boat registration fees and private donations. She stated that after FY 90, this portion of the boat registration fees will be earmarked for boat ramps. Commissioner Volpe stated that he recalls that the 50~ contribu- tion to be made by the Conservancy was dependent upon an on-going com- mitment for maintenance dredging provided by boater regiatrat~ons, which are not available, and he questioned where the funding for the project will come? County Manager Dorrill advised that his recommendation has not changed, noting that his recommendation and the proposal from the Wiggins Pass Conservancy are different. He explained that the Conservancy wants the County to participate in the initial dredging project, and then agree to the perpetual maintenance of the Pass, but noted that is not his recommendation. He indicated that the offer of the County is that it will be responsible for the permitting and construction, and will fund 1/2 of the project with boater registra- tion fees. Commissioner Volpe questioned whether there are funding sources Page 13 AUGUST 28, 1989 for the 8329,200? County Manager Dorrtll replied that there ts no shortfall, but It will have to be determined as to whether or not the Conservancy wants to be responsible for the sole project cost contri- bution of 1/2 of the money from private donations, with no ~uarantee on the part of the County, unless the Commission changes its mind. Ms. Pike referred to Page E-16, Fund 306 which reflects the budget for Parks and Recreation Capital Projects. She advised that this is funded with property taxes, and noted that the list of projects to be constructed are presented at the bottom of the page. She indicated that Projects 703 and 710 are CIE projects In answer to Commissioner Volpe, Mr. Lttsinger advised that $5 million ts needed for boat ramps which ts about 30.2 lane miles based on the current level of service standard which ts in the process of being modified downward. He Indicated that the new figure for boat ramps will be 11 lane miles. Commissioner Shanahan called attention to the Community Parks Phase II expenditures, $430,000 baseball field, and questioned whether a breakdown of the expenses will be presented for review? Public Services Administrator O'Donnell advised that this figure was based upon the $420,000 appropriation for the Golden Gate baseball field, and noted that construction costs have increased substantially. He explained that when the project is ready to be designed, it will be presented to the Commission and Staff will request authorization to request bids. Ms. Pike advised that there ts a breakout of Community Parks Phase II at the bottom of Page E-16. Commissioner Volpe questioned what progress ts being made on the Immokalee Middle School rehabilitation? Mr. O'Donnell indicat~d that there ts a program through the State and the School District will have to apply for funding. Ms. Zalka advised that the $200,000 ts a transfer from the MSTD. Commissioner Volpe Indicated that his recollection is that the amount was $650,000. Mr. O'Donnell stated that Commissioner Volpe is Page 14 AUGUST 28, 1989 correct, adding that the amount was 8604,000, but Staff felt that a project of that size could not be undertaken immediately, therefore, it was to be phased in at $200,OOO per year. He advised that no grant monies have been budgeted. County Manager Dorrlll indicated that the school system has access to construction funds administered by the State, called "PECO" funds that partially build new schools. He stated that the final bu~et document may need to be adjusted to show the intent to apply for those PECO funds through the school system. Mr. O'Donnell advised that as part of the swap, the School District agreed to submit the application, and the County was to put the particular details together, since it was to do the rehabilita- tion work. Commissioner Saunders stated that his recollection of the swap was that the School District was to use their best efforts to obtain the grant. Parks & Recreation Director Crawford concurred with Commissioner Saunders. He explained that generally, Public Education Outlay F~nds cannot be used for rehabilitation efforts; they can be used for new construction. Commissioner Saunders suggested that Staff contact the School Board to make sure the application has been filed. Mr. O'Donnell advised that the official swap of properties between the County and the School Board has not been finalized. In answer to Commissioner Volpe, Mr. O'Donnell stated that the soccer field in Immokalee has been down-s/zed, and it will not have lights. Commissioner Goodntght advised that the facility in Immokalee will not need sod, sprigging or a sprinkler system, since the School Board spent $500,000 on this field three years ago, and she feels that before the County spends any money on the property, it should be decided what is usable and go in and redo it. She noted that last year, the Pop Warner Association was to help build the concession Page 15 AUGUST 28, 1989 stand. She indicated that she believes that the figure as shown under Capital Improvements is the overall figure of how much it will cost to have the facility completed, but how the money will be put together is reflected in the budget. Mr. Crawford stated that the first thing that needs to be accomplished is the completion of the Master Plan of the Immokalee Community Park to reflect the recent exchange of property with the School Board. He explained that the facility is to be rehabilitated, and there is a carry forward of $100,000 to complete a football soccer field, but if al/ of those funds are not necessary, due to other' improvements on the school site, they will not be expended. He lnd~- cared that the Master Plan needs to be completed now since the facili- ties that were to be constructed at the Heath site, and will now be the new school, needs to be reflected on the Immokalee Community Park site and the new Middle School site so those facilities integrate well with each other. He reported that since this was a project to be completed, Staff felt it was important to fund it. Commissioner Goodntght stated that she wants Staff to realize that she is not looking for merely a soccer f/eld, but a lighted football/soccer field, that can be played on at night. County Manager Dorrill stated that the budget detail for this organization needs to be checked out to see what was identified within that specific organization, and presented at the wrap-up session. Commissioner Volpe called attention to the per unit cost of $610,000 for the Community Center, noting that $6?0,000 was budgeted, and questioned whether this figure can be cut back? Mr. O'Donnell indicated that the $6?0,000 reflects an updated ref- ined number for the anticipated 6,000 square foot Community Center. Commissioner Shanahan questioned whether the $6?0,000, and $430,000 could be deferred, if it is the pleasure of the Board? County Manager Dorrill advised that this may be done, noting that the Community Facility needs Level Of Service for parks will be adjusted, accordingly. He indicated that the Growth Management Plan Page 16 AUGUST 28, 1989 CIE document shows the Staff wish list costs associated with the maxi- mum facilities, and the decision rests with the Commission. Commissioner Saunders stated that Commissioners Shanahan and Volps's comments suggest that Staff come back and advise what the more accurate figures are, to see if there could be a cost savings, without reducing the Levels Of Service. Ms. Pike referred to Page E-17, Libraries Capita/ Projects F~nd. She advised that CIE Project 500 is Headquarters Addition, and $! mi/lion has been budgeted for this. Mr. OtDonnell stated that there is an expansion scheduled for Collier North by 1994, and Marco has the capacity for expansion of the new facility. Ms. Pike called attention to Page E-18, Fund 313 Road Construction. She noted that the revenue source is gas taxes, and the significant change in thls budget is that $1 million has been pledged in the gas tax debt service fund in anticipation of bond proceeds. She indicated that Page E-21, Fund 317 Arterial Road Construction references the bond proceeds. She stated that the 89-90 changes lists the fiscal year road projects to be funded from both funds. County Manager Dorrlll explained that more ts being spent than is being brought in, and a portion of the gas tax will pay off that portion of the debt service. He noted that impact fee money can only be spent in the district in which it is collected, and those revenues will go toward specific district related road improvements. In answer to Commissioner Volpe, Transportation Services Administrator Archibald advised that the total amount of $17,196,000 is a combination of gas tax dollars, proposed bond funding, and lmpact fees. ss. Co~immioner Smunderm left the ~eettng mt 11:55 A.M. Ms. Pike advised that with regard to the decrease in positions, two positions were transferred to Compliance Services during the m~d- year organization. Ms. Pike referred to Page E-190 noting that there are two expanded Page AUGUST 28, 1989 requests: 811,500 for a van to be used by a traffic technician tn traffic operations, and 8163,100 for an Interdepartmental payment to Real Property Management for staff support. Ms. Pike called attention to Page E-20, Museum Capital Budget which is to fund the relocation of a home that has been donated to the County, and to restore it as a part of the Children's Discovery Cottags. She advised that this will be the first phase of the children's museum. She noted that there Is a $6,000 private contribu- tion Included In the revenue source. Ms. Pike advised that Page E-23 ts the Water Management Fund that accounts for all capital projects managed by the Water Management Department. She indicated that a list of the capital projects are presented at the bottom of the page. She explained that there are two expanded requests: $95,000 for a front-end loader for right-of-way clearance along major drainage systems, and $61,100 for transfer to Water Management Fund to fund an engineering project manager's posi- tion. Ms. Pike stated that Pages E-26 through E-28 present the Road Impact Fee District Budget. She noted that the total fees budgeted throughout the ten districts for next year total $3,018,800, and that represents an approximate 60~ Increase in impact fees over last year. She Indicated that a new fund has been established based upon the expectation of an Interlocal Agreement with the City of Naples for collection of impact fees In the Incorporated area, as presented on Page E-26, District 4. Tape e3 In answer to Commissioner Volpe, Transportation Services Administrator Archibald stated that a portion of District 4 is within the City of Naples, and In so reflecting that, what will be collected by the City as a result of an Interlocal Agreement Is reflected, simi- ~ar to what ts being done with Parks and Libraries Impact Fees. Ms. Pike called attention to Page E-29, reflecting the Library Impact Fees Budget. She stated that the Impact Fees are collected Page 18 AUGUST 28, 1989 within the incorporated and unincorporated areas of Collier County, and the approximate dwelling fee is $173. She indicated that the num- bers from Development Services building permit counts were used to identify and forecast $1,01§,000 in revenues to be anticipated next year. She advised that the projects funded are listed at the bottom of the page: Headquarter's Addition, Book Collection, and Library Materials. Ms. Pike noted that Pages E-30 through E-32 present the Parks and Recreation Impact Fee Budget, adding that eight new funds have been created to account for the impact fees collected in each of the seven Community Park Districts, and for the Regional Park. She stated that it is estimated that a total of $2,380,000 will be collected from each of the Districts next year. She advised that since the funds cannot be used until deficiencies are eliminated, per the Comprehensive Plan, the revenue has been budgeted in Reserves, except for Impact District #6 which is the South Naples District where park construction will begin next year. She explained that $868,000 has been budgeted for design fees and for the purchase of land, and the funding sources are Impact Fees and a transfer of property tax revenue. *** Deput~ Clerk Kraft replaced Deputy Clerk Hoff~an at In response to Commissioner Volpe, Ms. Zalka replied that the total of impact fees to be collected from each of the districts next year is $2,308,000, and carry forward budgeted for the half year has been collected this year. Commissioner Volpe questioned if part of the impact fees are going for the regional park? Ms. Zalka replied in the affirmative and noted that it is on Page E-32. Commissioner Volpe questioned if the regional park has been approved? Mr. O'Donnell replied that although the park has been discussed at length, the Board of County Commissioners authorized collection of impact fees for the park, but no land has been acquired. He stated that the County was in nego- tiations with Willow Trust, but the financial terms were not attrac- tive. He explained that a final decision on the regional park has not Page 19 AUGUST 28, 1989 been made, but has always been included in the Growth Management Plan. Commissioner Hasse requested details of Impact District 7. Mr. O'Dornell replied that is The Vineyards area where the ?th community park ia proposed to be located. Mr. O'Donnell explained that that park will not come on line until 1994. Ms. Zalka indicated that the money is being collected and put in reserve. Mr. O'Donnell stated that the County has worked out the basic design of the park with The Vineyards and the School District. Commissioner Shanahan questioned if the reason Marco Island is excluded on Page E-30 is that Marco Island is far in excess of needs in that area and what the Growth Management Plan demands? Mr. O'Donnell concurred and noted that the County has anticipated $200,000 of expenditures for fac/lit/es on Marco Island over the next 5 years, and said that that small amount of money could be absorbed through o,;era// operating budgets, and no impact fee was levied on Marco Island. He explained that the County wanted to keep the same dollar amount for an impact fee in all of the districts. Commissioner Hasse questioned if the regional park impact fee county wide will be impact, ~ by all the districts? Mr. O'Donnell responded that the regional park impact fee is a county wide impact fee paid in the incorporated and unincorporated area. He indicated that the City of Naples and Everglades City are incorporated. Ms. Pike noted that that was the conclusion of her presentation of the capital budget. She requested that the Board of County Commissioners turn to the blue book, and pointed out on the second page behind the guide entitled "Debt in Capita/", an Analysis of Funding Shortfall FY '90 Budget vs. CIE as explained by Mr. Litsinger. She noted that she has presented the tentative budget, and s~nce the budget was prepared, some changes have been made in the CIE pro~ect cost. She stated that Staff has attempted to identify some of those changes, and at the bottom of the page, the differences in the road system are noted. She explained that she presented the local road budget and the CIE captures additional local road cost and state road Page 20 AUGUST 28, 1989 cost. In response to Commissioner Volpe, Mr. Archibald replied that S.R. 84 is budgeted at a cost of $1,?00,000. Commissioner Volpe questioned the projects identified in the CIE element, but not identified in the blue book? Mr. Archibald responded that the list in the blue book is what is funded based on the revenues Collier County has, and the CIE list is what is needed in road improvements to meet the concurrt,,%cy requirements of the Growth Management legislation. Commissioner Volpe questioned who decided that No. 14, Pine Ridge Road, in the CIE ele- ment for 89/90 and 90/91, would be funded while others would not be funded7 Mr. Arch/bald responded that in prioritizing the projects, Staff went back to the 5 and 10 year plan and those road prior,ties were determined by traffic volume projections. He explained that Pine Ridge Road fell into the category at a high mark, but 2 projects were ahead of it, and they consumed the dollars available. Commissioner Volpe pointed out that Pine Ridge Road between U.S. 41 and C.R. 31 may be a grtdlock and questioned if one project could be swapped for another7 Mr. Archibald responded that Staff prepared the list of pro- Jects in the CIE that are needed, a list of projects currently under- way with a high priority in the County's 5 year plan based on volume, but have not provided a list of projects being deferred, based upon the funds available at this time. Commissioner Volpe questioned ~f S.R. 84, Davis Blvd. from Santa Barbara to County Barn ts a State road that is proposed to be funded? He explained that ]f he had a choice between that and Pine Ridge Road, he might decide on Pine R~dge Road. Mr. Archibald pointed out that a number of different factors have to be considered; the volume of traffic, and the entire network because, for example, Livingston Road is not part of the current net- work, but the County will want to build segments of Livingston Road tn years ahead. He explained that commitments have been made to encourage projects to be constructed ahead of schedule. County Manager Dorr]ll commented that it would be a good ~dea for Staff to make a report, and come back on Tuesday to show the r&t~onale Page AUGUST 28, 1989 and the traffic count Information that explains Staff's list of pro- posed road construction projects for the coming year. Commissioner Volpe responded that the same thing has been analyzed over and over again, and he does not feel that these situations are changing dally. He pointed out that priorities were established in May on Staff's recommendation, and now in August the County Is re-prioritizing these projections. He emphasized that there has got to be something else driving it besides the traffic count. Mr. Archibald pointed out that the most Important issue is traffic and at some future time, the County can look at the 5-year plan, which ts being used at the Staff level as the planning document to prioritize and undertake the destgu and permitting of the projects. County Manager Dorrtll proposed that since Chairman Saunders, who is at a speaking engagement, requested he be present at the ? cents sales tax discussion, this may be a good opportunity to recess. County Manager Dorrtll Indicated that a handout showing the option of having a sales tax, for how long, what type of projects should be Included etc. will be distributed to the Commissioners for review during recess. Commissioner Hues recessed the mttng at 12:40 P.M. ~nd recon- v~s~ed at 2:00 P.M. Co--teatoner Smundere present at this ti~e. CAPITA~ OUTLAY - Continued County Manager Dorrtll explained that the Capital Budget as struc- tured tn the tentative budget document ts deficient by the amount attributable for local road~. He indicated that that amount will be identified, but as part of the larger question, it relates to con- currency and adopted levels of service. He explained that Staff pro- vided the analysis for the Board of County Commissioners to study relative to a sales tax referendum. He noted that the amount of money that could be raised to offset deficiencies In the state road network, which have a moratorium Impact on the community, will be shown, es well as other and current unfunded capital needs such as developing affordable housing, creation of a trust fund and providing funds Page 22 AUGUST 28, 1989 to construct schools with a portion of the cent, but would require the County to go to a lO-year term. He explained the major questions are whether the Board of County Commissioners is in support of a 7th cent local option sales tax and, if so, the Board of County Commissioners can then reach a consensus on the types of projects and initial term that would be on a referendum ballot question. He explained that the issues relate to local roads and other non-CIE needs for the County, the impact of deficiencies in the State road system end the extent to which the Board of County Commissioners would entertain or be interested in providing funding for other areas to be identified, such as affordable housing, creation of a trust fund and providing funding to construct schools. Growth Management Director Start Lltstnger noted that last week the Board of County Commissioners received a draft of the Capital Improvement Element update and the numbers show substantial deficits relating to a capital improvement element identifying a group of projects that meet the minimum, and he emphasized minimum, concurrency requirements in the County for the next 5 years. He stated that the concurrency requirements related to the ]eve/ of service standards were adopted by the community through the 190 public meetings held. He explained that a deficit of 40.5 mi/lion dollars has been iden- tified and the key areas are in County and State roads. He pointed out that a minimum deficit in County roads over the § year period of approximately 17 million dollars, unfunded, has been identified. He indicated that the necessity for State road network in the amount of 43 million dollars, of which 4.8 million has been tdentif~ed in the State's § year plan, has been identified. He explained that roads are included in the CIE document because the County must maintain level of service standards on the State roads, and the key to the entire financing plan of the CIE is its dependence on revenues from the 7th cent sales tax. He pointed out that the County must produce a current CIE document that is funded and balanced from available current revenues without additional increases in property taxes and Page 23 AUGUST 28, 1989 the ?th cent sales tax ts the only revenue available at this time. He stated that 64 million dollars tn projects to be expended tn the CIE is Identified to be expended with the sales tax. He noted that 3 pro- Jects are 1) proposed expansion to the County Jail, 2) needed improve- ment to State roads to maintain concurrency at minimal levels and 3) additional Improvements beyond gas tax revenues for the County road network totalling 64 million dollars. He explained that should the County choose not to adopt the ?th cent sales tax, the options range from lowering of levels of service standards to a delay in the Issuance of Development Orders or postponement of various types of projects that are not CIE and concurrence related. Commissioner Volpe questioned where the State road projects are that are included in the 43 million dollar category? Mr. Lltsinger replied "Projects number 42 through 49". In reply to Co--missioner Volpe, Mr. Lttslnger stated that the road segments on the State road network have been Identified by MPC as roads that will have to be improved within the 5 year CIE period to avoid a deficiency resulting tn a moratorium to areas impacted by those roads. He explained that specifically the roads involved are most sections of U.S. 41 and Davis Boulevard. Commissioner Volpe noted that he had a problem with the 43 million dollar figure and the fact that the State roads are included in the County's Capital Improvement Element that does not include 951. Mr. Lltstnger explained that direction to MPC and Transportation tn developing the list of road projects was to identify those road projects requiring improvement based on the County's new concurrency software system developed through Tindale and Oliver as a subcontract to Icard Merrill. He stated that as of today that system does not identify S.R. 951 as being potentially deficient and the explanation is quite detailed. Commissioner Saunders stated that the road counts for 1990 will cause that to change very fast. Mr. Litsinger emphasized that this is a minimum program to maintain mini- mum concurrency levels with adopted level of service standards as of the analysis this month. Commissioner Volpe questioned U.S. 41 from Page 24 AUGUST 28, 1989 Immokalee Road to Laurel Oak Drive, Project No. 45, and 6-1aning of U.S. 41 from Laurel Oak Drive to Vanderbilt Beach Road? Commissioner Saunders replied that that is part of the Pelican Bay planned deve- lopment. Transportation Services Administrator Archibald explained that there has been a commitment for the 6-1aning, but not all the way to Vanderbilt Beach Road; it will go to the northern entrance of Pelican Bay and that is currently under design by consultants chosen by Westinghouse Corporation. He stated that a segment south of Vanderbllt Beach Road on U.S. ¢1 is not included. A discussion followed about the current contract for 6-1aning from Solana Road north. Commissioner Volpe questioned the grade separation at Pine Ridge Road? Mr. Archibald explained that model studies show that traffic volumes at intersections will be so heavy in the future, an overpass or flyover will be required to avoid a gridlock effect at all of the major intersections. He stated that on both the State and Co~u~ty system, flyover designs at major intersections have to be incorporated and will be required from a capacity standpoint as well as an environ- mental standpoint. In response to Commissioner Volpe, Mr. Archibald explained that there are 4 urban interchanges on the U.S. 4! corridor. Commissicner Volpe reminded Mr. Archibald about their discussion before lunch about Pine Ridge Road from U.S. 41 to Airport Road and the priorities of that. Commissioner Volpe questioned 6-1anln9 the East Trail from Rattlesnake Hammock Road to Barefoot Williams Road? Mr. Archibald replied, "Yes, and on to 951" County Manager Dorrill emphasized that Staff is trying to show the extent of failure on the State network over the next § years for which there is no State funding and ~quating that to a dollar need because the failure will result in moratorium problems. Commissioner Volpe stated that in order to maintain con- currency, 6-1aning U.S. 4! from Rattlesnake Hammock to 951 will be necessary. Mr. Archibald concurred and indicated that from & volume capacity standpoint, the model studies indicate in 1992, before the AU6UST 28, 1989 end of the 5 year plan, that road will be Level of Service "D". In response to Commissioner Volpe, Mr. Archibald responded that the new software will do a better Job of entailing specific needs. In ~sponse to Commissioner Volpe, Mr. Archibald replied that in relation to 951, funding has been identified at the State level that would a~sure the County the most important segments of S.R. 95~ meet con- currency. He emphasized that a funding source must be shown in the CIE and the State has funded the northern contracts for S.R. 9~! and the County feels that with that funding in place and minor improvements to the southern segment of S.R. 95~, that corridor can be brought into compliance with the Growth Management Plan with the identified funding. He explained that model studies in a year may change the criteria, but each year the overall CIE will have to be updated. Commissioner Saunders stated that the issue of ll§ or ll? mt/lion dollars of road projects throughout the next 5 years could probably be doubled during the l0 year picture, and Assistant County Manager McLemore will present a conceptual sales tax Capital Improvement Program. He explained that the Board of County Commissioners will have to decide what it is willing to do in terms of a local option sales tax referendum, and if the Board of County Commissioners are willing to place it on the ballot, what structure or form will it take7 Commissioner Volpe emphasized that in his view a po/icy decision must be made whether or not Collier County is willing to accept the responsibility for maintaining certain levels of service on State roads in order to maintain concurrency. He pointed out that 43 million dollars are budget for State roads. Commissioner Saunderm indicated that the policy decision has been made to adopt State accepted standards for level of service on state facilities in January when the Comprehensive Plan was adopted. He explained that the question is will the County be able to fund that, and if not the County must decide if the levels of service are to be lowered. A discussion followed about funding the CIE. Page 26 AUGUST 28, 1989 Commissioner Volpe questioned the alternative of lowering the level of service on State roads? Commissioner Saunders responded that If the County does not fund its Capital Improvements Klement with the Levels of Service already adopted In January, two alternatives exist: lowering levels of service and allow moratoriums to be imposed. County Manager Dorrtll pointed out that levels of service cannot be lot, ered on State roads, and Mr. Litslnger responded that the County can pro- pose to lower level of service standards, but achieving success ts open to debate. County Manager Dorrtll stated that there is no obli- gation on the part of the Board of County Commissioners to fund State roads, but in order to maintain concurrency the Board of County Commissioners must consider whether it wants to constder funding and &cceptlng the responsibility to Improve State roads. A discussion followed about funding State roads. Commissioner Saunders questioned if the level of service drops below the adopted level of service can the State impose a moratorium on construction tn a corridor and around those State facilities? Mr. Lttslnger replied that Staff would have to recommend to the Board of County Commissioners that a moratorium be imposed. A discussion followed about State roads and moratoriums. Commissioner Shanahan questioned if financing the construction and maintenance of State roads would eliminate State funding? Mr. Lltslnger replied that he understands if the County undertakes a State road project, the County does not lose Its allocation of State dollars, the funds are reallocated elsewhere in the County. Assistant County Manager McLemore stated that the Finance Gommit- tee ts made up of the Budget Office, the Clerk, Finance Office, the County Manager's Office and Growth Management Office and its purpose Is to review all capital Improvements and debt financing. He indi- cated that Staff looked at CIE needs that require a multi-year program, but the County has not looked at Its non CIE needs in the same framework. He pointed out that due to financial shortfalls in the original § year period, shifting of projects occurred to the next Page 27 AUGUST 28, 1989 5 year period. He explained that the ! cent sales tax must be packaged in such a way that the public accepts it. He indicated that large scale building moratoriums would substantially weaken the local economy, placing pressure for property tax increases to offset losses of government revenue. He stated that the largest revenue producing mechanism available for local governments to finance massive infrastructure is the 1 cent local option sales tax. He indicated that in the County's recent opinion survey, most of the public considered the eales tax fairest, when compared with property taxes, tolls and other means of financing Infrastructure improvements. He pointed out that State-wide an average of 20% of the sales tax is estimated to be paid by the traveling public, and tn Collier County 40%. Commissioner Saunders questioned where the 40 percent figlAre came from? Mr. McLemore stated that a local study was done here and the State averages 20%, perhaps 40%, and it is probably somewhere in between. Commissioner Volpe pointed out that in 1988 a study was done by Reynolds, Smith & Hills of Jacksonville by the Collier County Planning Department and 89 percent of the total Collier County retail sales, seasonal residents account for only 11 percent of total sales of 115.3 million. In response to Commissioner Saunders, Commissioner Volpe stated that it does not bear out Mr. McLemore's figures. A discussion followed about percentage figures. Mr. McLemore stated that the large revenue yielded from a 1 cent sales tax will facilitate pay-as-you-go and short-term debt, and as a result will substantially reduce the financing cost of capital impro- vement programs. He emphasized that the sales tax revenue can utilize financing capital Improvements until such time that land development regulations, impact fees and annual recurring revenues will finance growth related infrastructure. He explained that infrastructure is a community problem, sales tax ts a community Issue, and a coordinated approach is needed for presentation of the sales tax issue to the com- munity. He noted that the coordinating of one mil! of the sales tax addresses both Capital Improvement Elements and non-Capital Improve- Page 28 AUGUST 28, 1989 ment Elements. He indicated that the County's major financing problem relative to roads exists in the second 5 years and pointed out on the displayed chart the revenue flow against the project implementation schedule. Commissioner Volpe questioned what revenues exist in the projec- tions? Mr. McLemo~e responded that impact fees are projected in those income figures. In response to Commissioner Volpe, Mr. McLemore explained that the 60% increase in impact fees is projected for the next 10 years, and the 5% local increase of § cents in the gas tax revenues is projected to lower the deficit from 47 million over the 10 year period to 15 million in the local road program. Mr. McLemore stated that that is not in the projection because the County has to wait and see what the State will do. He explained that the State is looking at several options; doing nothing, taking care of State roads and declaring State roads to be a local problem. Commissioner Hasse commented that past history does not indicate the State will give the County money for State roads. Commissioner Volpe pointed out that the County could end up with a 47 million dollar deficit over the l0 years, and expressed concern that the County is accepting respon- sibility at a local level for State roads. Commissioner Volpe pointed out that the projections show a 35 million dollar surplus at the end of 5 years. Mr. McLemore explained that the projections are based on 10 years. Mr. McLemore replied that the surplus is not in the road program, but in the total revenues. He indicated that the money is not appropriated to direct projects, but is a bottom line number of the amount of money needed from the sales tax over a 5 year period and it is applied to wherever the deficits are. He emphasized that these programs are road revenues and road projects. In response to Commiss~oner Volpe, Mr. McLemore replied that a 35 million dollar surplus is shown for a § year period using the sales tax, but does not show a surplus for roads. Commiss~oner Volpe noted that the basis of the discussion is that the sales tax ia to be used to fund this deficit. Page 29 AUGUST 28, 1989 Commissioner Shanahan questioned if Mr. McLemore ts going to give examples of what the County will do w~th revenues it might receive from 'the State, ~.e. the 5 cents gasoline tax or other means of revenue? Mr. McLemore responded "Yes". Mr. McLemore outlined on the displayed charts the relation of the yields to the sales tax; representing ! cent of the new gas tax over the 10 year period, ! cent of the bed tax, 1 mill of property tax and ! cent of sales tax. He ~ndicated that the yields are based on a 13.6 percent Increase every year, the State's current pro3ection for next year. In response to Commissioner Volpe's question about the projected revenues from the sales tax for the next 5 years of 1OO mlll~on dollars ~n the Capital Improvement Element, and the last 5 years yielding 345 million dollars, Mr. McLemore responded that the Flnance Committee determined these revenues. Mr. Litsinger clarified that the 100 m~llion dollar surplus in the f~rst 5 years of the CIE assumes the County will collect 5 or 6 million dollars in the f~rst year; whlch ls 4 1/4 years of revenue and his figures are conservative and does show available revenues from other sources. He pointed out that In the CIE 57 million dollars is in deferred road pro3ects into the second 5 years. Mr. McLemore stated that assuming 20% of the sales tax ks generated by the tra- veling public, that is a lot of money. Commissioner Volpe pointed out that ~ is the f~gure he has. Commiss~oner Shanahan asked for a more realistic figure. Mr. McLemore outlined and explained the uses ~or the revenue ~rom the 1 cents sales tax as follows: Transportation - local and State road deficits will be taken care of, 2 mi/lion dollars will be added to the Golden Gate Trust Fund In perpetuity for the paving of limerock roads, 5.2 milllon dollars for the development of the Immokalee Airport; Environment - financing of all Capital Improvement Projects related to the County's water management system; Parks & Recreation - w~ll provide all needs including the regional park, original construc- tion for beach renourishment and Pass dredging and a trust fund in Page 30 AUGUST 28, 1989 perpetuity providing 12 million dollars for hurricane damage, etc. to the beaches, and 4 million dollars for Marco Island in a trust for future beach renourishment, release of boat monies to build boat docks, museum improvement program, agricultural center and 1.4 million for the homeless, a contribution to the Salvation Army, Community Development - 15 million dollars for an infrastructure trust fund to promote affordable housing, a new county government complex in Immokalee, and financing of debt service in this program. He indi- cated that schools face an 80 million dollar shortfall in the next 5 years, 200 million in 10 years and this can also be handled under the sales tax revenue. He emphasized that this program is to minimize consumption of local dollars and minimize property tax increases. He pointed out that if the road situation improves, the additional money saved could go to the schools. Commissioner Shanahan commented about the concern over tax increases, and questioned if adopting this program would allow the limitation on taxes people are asking for, i.e. less than lO percent increases per year rather than 20 percent increases per year? Mr. McLemore explained that tremendous increases in assessed values can be dealt with by capital and growth assessment values. He indicated that fair market value determines the rate of assessments and without some kind of cap, there is no direct way to affect the individual, but an indirect way exists by trying to minimize the annual increase in pro- perry tax requirements through this kind of program. Commissioner Volpe pointed out that this 10 year capital improve- ment program ignores maintenance and operations, and with 450 million dollars in new capital projects, someone will have to staff and main- tain these projects, and it is unrealistic to believe that thi~ would result in some sort of freeze on taxes. Mr. McLemore responded that if the Constitutional Officers, Board of County Commissioners and Manager's agency work together and do major structuring as in the past and major capital improvements through this means, the Oo%~nt¥ can hold increases at minimal levels. Commissioner Volpe questioned how a ! Page AUGUST 28, 1989 cent sales tax could fund CIE projects and non-CIE over 10 years? Mr. McLemore stated that the public must be informed of the program, how it works, and how it will help keep property taxes down and the County's annual operating expenses under control. Commissioner Hasse questioned how much of this comes from Collier County residents, and pointed out that 20% of the total 445 milllon dollars revenue is a lot of money. Commissioner Saunders noted that the same argument can be made about ad valorem taxes, because hotels and restaurants pay ad valorem taxes and pass it on to their patrons and the percentage, whether sales tax or ad valorem tax, comes out the same. He reported that the issue the Board of County Commissioners needs to decide is if they are willing to place the local option sales tax on the ballot in the form presented by staff, or some other form. He indicated that his position is that he will support placing an issue on the ballot to let the voters decide on a local option sales tax, if, and only if it is in a form that has a chance of passing. He stated that a 10 year local option sales tax generating 445 million dollars in revenues, of which 150 million are to be used for roads, does not have a prayer of passing. He pointed out that it becomes a no growth issue as well as a no tax issue. Commissioner Volpe commented that 100 million of that is for State roads, and Commissioner Saunders stated that regardless it is still infrastruc- ture to facilitate new growth and avoid a moratorium, and he feels that the majority of the people in this community would vote against that. He questioned if a format or structure of the local option sales tax such as using it for beach renourishment and a trust fund, park facilities, criminal Justice facilities, would be acceptable? Commissioner Volpe stated that he would like sufficient Justifica- tion from Staff to bring this to the voters. He reported that he has not heard sufficient Justification, and he is not certain that the County should assume the responsibility of State roads toda~ without exploring other alternatives. He pointed out that the 27 million dollars in Park and Recreation includes 46.2 miles of bikepaths wh~le Page 32 AUGUST 28, 1989 the County has a surplus of btkepaths. He reported that he looked to see where the County needs to spend the dollars to fulfill its obliga- tions under the Growth Management Plan, and asked for assistance. Mr. McLemore responded that everything in this plan is based on Levels of Service, Growth Management issues and non CIE issues, considered to be least important. Commissioner Volpe stated that in lookirg through Parks & Recreation, the olympic size swimming pool, amphitheaters and regional parks is someone's wish list. Mr. McLemore reported that that wish list was the result of advisory committees working long and hard for 2 years to try to come up with what the level of requirements for this community are. Commissioner Volps explained that he feels if the Board of County Commissioners are going to take this issue to the voters, something specific must be provided, such as an immediate benefit to the taxpayer. He indicated that the Board of County Commissioners need more direction in terms of where the money will go. Mr. McLemore emphasized that the Finance Committee put together a plan to minimize debt and get the County back to pay- as-you-go. Commissioner Saunders indicated that Staff has done exactly what they were asked to do. He pointed out that the Board of County Commissioners adopted a Comprehensive Plan that has all of these pro- Jects, and Staff is now saying that if you are going to build those projects, here is a way to pay for them. He noted that the Job of the Board of County Commissioners is to say that Collier County may not be able to build all of these projects, but when you eliminate some pro- Jects, the County will still have a shortfall for projects that the Board of County Commissioners determined are important; such as $18,000,000 for beach renourishment, and that includes the Gtty of Naples' share, and the regional park costing 5 to ? million dollars. Tape~¢ County Manager Dorrlll commented that there is no money for 45 mi/lion dollars in local county road network. He referred to the tentative budget, and said that in that budget there is the beach Page 33 AUGUST 28, 1989 renourishment project, a shortfall tn the County road system over the revenues available, the need to expand the County Jail and the Sheriff's Administration facilities. He pointed out that the fact that the County wi]] not meet, at the conclusion of construction, existing County parking requirements and also identified a County parking garage or the purchase of additional property to expand ~he parking lots. In answer to Commissioner Volpe, he stated that the County needs to meet those issues to meet the minimum t~pe growth management type requirements. He explained that he asked the Finance Committee to look at the total community needs or projects that have been identified by Collier County or by some advisory board or by recognizing that the community and School Board also have community needs. He stated that Staff produced this absolute maximum ten-year list of community needs, and at the same t~me Identified the problems the Board of County Commissioners will have next year in terms of not having available revenues. He reported that next years problems relate to roads, Jail, and beaches; although beaches are not a CIE project, they have a great deal of community support. He noted that a parking garage was identified because the County cannot expand ho]dings here to meet the County's parking requirements. Commissioner Shanahan stated that he is convinced the Board of County Commissioners should give the citizens of Collier County an option and referendum insofar as a one cents sales tax is concerned. He emphasized that he is convinced the County cannot meet infrastruc- ture needs unless this is accomplished. He reported that he is not sure he would like to ask the citizens of Collier County to go for 95 million dollars to take a State responsibility up front and release them from that responsibility, even though they have statutory respon- sibilities to send money back to Collier County. He emphasized that the ! cent sales tax must be packaged properly, honestly and accura- tely as to what the out-of-county, out-of-state, out-of-country people can or might contribute to a sales tax of this kind. He noted that Page 34 AUGUST 28, 1989 people are concerned about what they have seen as out of hand rising taxes. He stated that the people must be given an option to decide how long they want the tax, i.e. 3, 5, 10 years and identify the type of programs to spend it on. He explained that it could be sunsetted for 5 years with an option to move it ahead. Mr. McLemore stated it is a tough situation, but he feels that if the Board of County Commissioners puts trust tn the people, they will give the Board the right situation. Commissioner Shanahan concurred. Mr. McLemore indicated that the Finance Committee is hopeful that the State will do something and those dollars can be put in the schools. He indicated that the Finance Committee effort to meet the 10 year 200 million dollar school obligation, hoping that the State w~ll come through and give the County money. Commissioner Volpe q~est~oned ~f that ts the School Board's responsibility or is It the responsibility of the Board of County Commissioners to fund schools? It was the con- sensus of the Board that it ts not their responsibility. Commissioner Shanahan emphasized that the taxpayer votes on a referendum to the beat of his ability with the knowledge he has on hand. County Manager Dorrlll stated that Staff has Increased the Board of County Commissioners' awareness and the Board knows what ks in the tentative budget and he hopes that the Board appreciates the much larger community needs. In response to Commissioner Volpe, Mr. McLemore replied that using the sales tax makes using the local revenues to bond unnecessary, which returns the County to pay-as-you-go and local money ts not being tied up for bonds. The following speakers were tn favor of the one cents sales tax. Ed Oatea, spoke as a private citizen, also represented the Naples Civic Association, and who cha~red Growth Management port,on as Chairman of CCPC, and said he was supported by the Naples Area Chamber of Commerce, The League of Women Voters, The Collier County Building and Contractors' Association and the Board of Realtors. Ross Oble¥, President, Economic Development Council Gall Boorman, A. Gail Boorman & Associates Page 35 AUGUST 28, 1989 Their reasons are: do not want to see quality of life in Collier County services lowered, do not want a moratorium, do not want higher ad valorem taxes, sales tax ts reasonable approach, many organizations willing to work with County Staff to get the sales tax issue to the public, sales tax is only tax that could present infusion of dollars for beach renourishment and roads, sales tax is least objectionable, cannot depend on State support for State roads and that problem can be alleviated by the sales tax revenue: retail, professional, restaurant, and hotel businesses are community minded and sales tax revenues will give out-of-towners opportunity to pay for services they use. eeaDeput'F Clark Kenyon replaced Deput~ Clerk Kraft at 3:30 P.M. ee$ County Manager Doff/l] stated that there are three issues that should be resolved regarding the sales tax issue. He noted that it should be determined if a sales tax referendum is in order and if so, does the Board want to limit or restrict the sales tax referendum to specific County projects or larger community needs. He noted that if these issues are decided tn favor, then a blue ribbon type committee should be established and the Supervisor of Elections will have to be notified and the pro3ects will have to be identified es well as the time frame necessary to impose the tax. He stated that he would some type of consensus. Commissioner Saunders indicated that the most the Board can do is determine whether they want a local option sales tax in any form and if so direct Staff to bring this matter to a regular Commission meeting. Commissioner Volpe stated that he has a problem with the Capital Improvement Element as this ts what is the driving force for the sales tax, noting that there are certain projects that the County should look into before they decide on a sales tax. He indicated that these projects should be prioritized and if there is not enough money then they should be put on hold and only the necessary obligations should be met, which will also satisfy the needs of the Growth Management Plan. Page 36 AUGUST 28, 1969 Assistant County Manager McLemore stated that from a financing point of view, he is very comfortable with what the Commission has been aho~. Ne stated that he is requesting that the Board look at Staff's recommendation as this type of issue needs to be dealt with by a citizens committee appointed Jointly by the affected agencies to develop this as a community program. He stated that there are ~ number of choices and the committee can help in this regard. Commissioner Goodnight referred to the wish list Commissioner Volpe had previously mentioned, noting that there are a lot of ser- vices that need to be kept up. She indicated that the $2 mi/lion that could be allocated from the one cent sales tax would bring up the road standards and would help the overall County. She indicated that the school's do not have the ability to put the sales tax on the ballot and therefore, their increases show up in taxes. She noted that the County needs to do whatever they can to help the small municipalities to keep the ad valorem taxes as /ow as possible. C~tNtoner $1~n~han ~ that the concept of · o~ c~l~t ~tion ~1~ t~ ~ adopt~ wtt~t reference to ~ctftc v~l~ or to the ~rtod of tl~s; the Su~.tsor of ll~ctla s~ld nottfl~ of the Co~ty's Intent; the 10 ~e~r blue rtb~n ~ld ~ atabltsh~; ~d the tnfomtlon should ~ br~ht ~ck ]~= 1, 1989, noting that this ts ~ tnfoml ~tton. County Attorney Cuyler stated that all that ts needed ts consensus and the Staff can bring back whatever information Is necessary. He stated that a formal action cannot be taken tn a workshop session. Commissioner Hasse stated that this Informal motion does not the hands of the Commission, adding that he does not see anything wrong with this suggestion. ~l~r las~ ~cond~ the lnfor~l ~tion. Co~tsstoner Volpe stated that the Commission ts talktng about adopting a budget before November 1, 1989, which Is built sro=nd the one cent sales tax. County Manager Dorrtll stated that next year's budget ts only con- Page 37 AUGUST 28, 1989 templated currently on the projects that have been identified, adding that a budget is a management tool. He stated that in the event that a referendum ia scheduled and depending on the outcome of the referen- dum, the budget would have to be adjusted accordingly. Commissioner Saundere stated that before he can vote to adopt the concept of a sa/es tax, he needs to know what projects are goiI'~ to be funded. He stated that he does not have any Justifigation for a ten year period. t~on call for the motion, it carried 3/2, (Connateelonmr~ and Volpe County Attorne~ Cuyler stated that this action is not binding tn & workshop session. SHERIFF'S BUDGET Commissioner Saunders stated that he asked Sheriff Hunter if he would be willing to have his budget continued to the first budget to be heard on Wednesday morning, adding that Sheriff Hunter has agreed to that. Commlmloner Saundere moved, seconded by Commteeton~ S~ c~-rledv~mnlmou~l¥, that the Sheriff's Budget be continued to ~dnesd~F morning at 9:00 A.M. PUBLIC CO08(B31T REG&RDING DATA PROCESSING Mr. Richard Laymon of 120 Cypress Point Drive stated that he the President of a local computer consulting firm called Science Software Technology, Inc. He indicated that he was the former director of Management Information Systems for the County for 6 years and last February lOth he resigned. He stated that he was honored to be the 1988-89 President of the Florida Local Government Data Processing Association. He indicated that everyone has a copy of a proposal that he prepared and delivered on August 9th in which it was suggested that a careful analysis of the budget proposal of Fllnd 504 and those of its clients is clearly in order. (Proposal not received by Clerk of the Board office). He stated that this proposal was vered in a discreet and confidential manner due to the political sen- Page 38 sitivities that it touches upon. He indicated that in the days following the delivery of this proposal, he was disappointed that no one called him and none of the telephone messages were being answered. He indicated that there have been problems between him and certain elected officials regarding his professional reputation and the County has not shown much interest in his proposals. He noted that this matter has evolved into some major problems and there is now indica- tion that some public domain software was stolen. He indicated that he has a registered copyright certificate for his Teledex software confirming his 1982 authorship and ownership. He indicated that after he delivered copies of his proposal, he obtained a copy of the 1989-90 tentative budget and was amazed at the 64.8% increase in the Proprietary and Trust Fund. He stated that he was told that this was a formal increase due to the Management Information System Department taking on the responsibility for the Board's new computer, adding that after a quick analysis, he feels that the Board is being taken advan- tage of. He indicated that if he could afford to take two weeks and do this analysis as an outraged taxpayer, he would do so. He stated that he would propose that the Board retain his professional services for the terms presented in his letter to Commissioner Saunders. He stated that there is a scandal brewing and the budget issues represent only the tip of the iceberg and the facts will eventually be disclosed. He stated that something needs to be done with regards to the budget immediately. Commissioner Hasse stated that he is not sure what the ¢ircu3astan- ces of this entire matter are, adding that he has always had the utmost respect for Mr. Laymon and his work. Commi&s[oner Volpe stated that he has no knowledge of what Mr. Layman is referring to, but noted that when he had his proposal, tt was $600 a day and he did not feel that the County could afford that. Commissioner Saunders stated that the issue at this point seems to be if the County Commission wants to retain a consultant to review the Data Processing budgets. He stated that he does not see the need for Page 39 AUGUST 28, 1989 a consultant at this time. Budget Director Zalka stated that the Data Processing budget will be discussed Wednesday along with the rest of the Clerk's budget. Mr. Laymen stated that there are questions that should be asked on Wednesday but documentation is needed before those questions are asked. He stated that the entire study would take about two weeks based on his professional recommendation. County Manager Dorrlll stated that he feels that at this point, there seems to be a disgruntled former Clerk employee and if there are budget problems, he can provide the Commission with an analysis of the specific need-be line item amounts within the Clerk's Date Processing Budget. He noted that Clerk Giles will be present for the meeting on Wednesday. Commissioner Saunders stated that between now and Wednesday, Mr. Laymen should talk with County Manager Dorrill or Mr. McLemore and point out some of the areas of concern and then on Wednesday, the Board would be more prepared to decide if a consultant should be hired to look into the budgets more fully. He stated that he does not have any question regarding Mr. Giles integrity nor does he have any questions regarding Mr. Laymon's integrity. Tax Collector, Guy Carlton, stated that his request is only a 3.3~ increase and Tallahassee is reviewing his budget. He stated that there will be a new tax bill for 1990 and the Commissioners Association has polled and received legislation to support putting on the tax bill ad valorem and non ad valorem together. He stated that he would like to get this bill approved as it would save Collier County about $50,000 to $60,000 in mailing for 1990. He stated that he has received four letters of endorsement and he would like the Commission to write a letter in support of this tax bill. Commissioner Saunders directed County Manager Dorrill to write the letter for the Commission. Budget Analyst Gan~,e] stated that this budget is fairly straight forward and has been approved by the State. She stated that the Page 40 AUGUST 28, 1989 Property Appraiser's budget ts on Page C-15 and it differs by $5,000 from the original budget. so~ O~ comrf1' CO~sszo~ Budget Analyst Gansel referred to Page B-1 in the original budget proposal noting that there is an increase of 10.4~. She stated that there ts no expanded service requests included, but there are some increases in the current service. Commissioner Saunders stated that there Is going to be a change tn the Commission office that may result tn some salary changes and in addition, there is some discussion of the possibility of creating another position as a receptionist. He stated that this would be the time to decide if something is going to be done. He indicated that he would like to have the Budget Office determine what It would cost for a receptionist and also for the equipment, etc. and bring this back at the wrap-up session. Commissioner Goodntght questioned the travel expenses with regards to tn-county travel and out-of-county travel, to which Budget Analyst Gansel stated that there is $10,000 in the budget for mileage reimbur- sement which would cover the travel for tn-county business purposes and in addition to that, there ts $17,500 for the out-of-county travel budget, which is $3,500 per Commissioner and ts flexible. Budget Analyst Gansel stated that the office automation system which many of the County departments are now using had been budgeted In the Cap~tal fund last year and in the Administrative Services operating budget. She stated that this year those costs are being allocated to the using department which is $1,800 per user tn the department. Commissioner Goodntght stated that she and Commissioner Shanahan are going to have offices off the campus and she would like something Investigated with regards to the office automation system being placed In their offices off-campus. She indicated that If she had this system In Immokalee, she could send messages through the electronic mail instead of making a long distance call. She noted that the cost Page 41 AUGUST 28° 1989 of the telephone could be compared over the next year with the cost of the terminal. c0mrr~ at-rmu~ Budget Analyst Gansel referred to Page B-2 noting that the overall increase in expenses tn the County Attorney's budget ts 55.6~ and current service Increase ts 13.4~ and one of the major lncrease~ is the office automation system. She noted that the County Attorney has requested that the salary increase for his office be 2.7% higher than the salaries that are being budgeted for other County employees. She noted that the average salary increase for other County employees ts 7.3%. She stated that he is requesting a 10% increase in salaries. County Attorney Cuyler stated that the additional amount ts directed toward his ability to keep the attorneys tn the office and be competitive with the private sector tn regards to attorney's sa/aries. He stated that he cannot maintain attorneys at a §% or 7~ increase. He noted that they cannot look forward to bonuses or moving up to partnership. He stated that tn a government office, they have their salary and the benefit package. He stated that the salary ia not necessarily keeping his people in his office, but a point can be reached with salaries where it becomes a factor tn the inability to hold these people. He stated that there may be something that attracts them to the Job other than salary, but if they are not given a decent raise every year, then that ts something that can cause that person to leave a Job. Commissioner Shanahan stated that he would like to think that the County ts becoming competitive with private industry and Mr. Cu¥1er stated that the County Manager is working toward that direction. He stated that he feels that the County Is more competitive in other sec- tors of county employment, but the legal area may not be aa com- petitive. County Attorney Cuy]er stated that the starting salaries for the Attorneys in his office are much less than they are in the private sector, adding that this will give him the ability based on parlor- Page 42 AUGUST 28, 1989 mance to give his employees a 10~ Increase In salary. He Indicated that he needs the flexibility. In answer to Commissioner Hasse, County Manager Dorrtll stated that the other employees can compete for 10~ raises In the coming year and if history Is any indication of what will happen, then about 30~ of his employees will get 10~0 about 50~ will get ?-1/2~, about 10~ or 15~ will only get 5~ and some of them will not get any raise. Commissioner Goodntght stated that she would like to see the attor- neys have the opportunity to receive a 10~ increase, but the rest of the employees in the office should comply with the rest of the County employees. She stated that she feels that It ts necessary to pay the attorneys In order to keep the type of attorneys that the County currently has. Commissioner Saunders stated that he does not have any problem with the request. ~ ~ I~I~[INISTR~TION Budget Analyst aansel referred to Page B-3 which Is Other General Administration and shows an 11~ increase, adding that for the current service there ts an expanded request of $60,000 to restructure the County Code of Ordinances. She stated that this budget is a catch-all budget for things that do not appropriately belong In other budgets, like the County audit, some of the County-wide electricity cost, and one employee. In answer to Commissioner Volpe, Finance Director Yonkosky stated that these ordinances are other than the land use restructuring. He stated that this needs to be updated as it has been about 20 years, adding that the County Attorney's office is experiencing a lot of problems tn tracking through on Ordinances. He stated that at the pre- sent time, the codification is updated twice a year. He noted that tn this expanded service request, he ls anticipating putting in a vehicle that will update the ordinance every six weeks. Commissioner Volpe questioned the $10,000 Increase in additional Page 43 AUGUST 28, 1989 billings for the County-wide audit, to which Finance Director Yonkosky stated that during the current fiscal year, the Auditors came back and asked for an additional $20,000 and the County Manager came to the Board and asked for half of that. County Manager Dorrtll stated that this is not part of next year's budget, adding that they submitted a claim for extra services and the Board approved the $10,000 tn the past year. Finance Director Yonkosky stated that the only amount that ts in the budget for next year is the beginning amount that the Board approved two years ago with the 6% annual cost of living increase. He noted that the annual audit is budgeted for $140,000. GO~~~'S OFFIC~ BUDGET Budget Analyst Gansel stated that the County Manager's Office budget is on Page B-5 which shows a 6.4% increase in expenses and included in that increase, the County Manager has absorbed the cost of the office automation. County Manager Dorrill stated that his office has the same number of employees that he had when he started in this office ten years ago. COU~T"f ~ FOR OFFIC~ OF MANAGEMENT AND BUDGET Budget Analyst Gansel referred to Page B-6 and stated that there ts a 10% increase and the expanded service request is for an addi- tional position which would be a budget analyst that would be working on the increasing of productivity analysis. N~XT MH~"fING ~DAY~ AUGUST 30~ 1989 It was noted that Wednesday August 30, 1989, would be the next budget meeting and the Sheriff, Utilities, and Improvement Districts will be heard this date along with the rest of the budgets that are already scheduled for that day. There being no further business, the meeting was adjourned by Order of the Chair - Time 5:00 P.M. Page 44