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BCC MInutes 09/17/1986 B Naples, Florida, September 17, 1986 LET IT BE REMEMBERED, that the Board of County Commi~sioner~ 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 7:35 P.M. in SPECIAL PINAL BUDGET HEARING SESSION in Building "F" of the Courthouse Complex, East Naples, Florida, with the following members present: CHAIRMAN: John A. Pistor VICE-CHAIRMAN: Anne Goodnight Frederick J. Voss Max A. Hasse ABSENT: C. C. "Red" Holland ALSO PRESENT: Virginia Magri, Deputy Clerk, Donald B. Lusk, County Manager; Neil Dorrill, Assistant County Manager; Tom Olliff, Assistant to the County Manager; Ken Cuyl~r, County Attorney; George Archibald, Public Works Administrator; Thomas T. Crandall, Utilities Administrator; Nina Small, Acting Community Development Administrator; Leo Ochs, Administrative Services Administrator; Lori Zalka, Budget Director; Steve Carnell and Jane Fitzpatrick, Budget Analysts; Kevin O'Donnell, Public Services Administrator; Nancy Israelson, Administrative Assistant to the Board; and Bill McNulty, Sheriff's Department. ... -.. Page 1 m~ a9? p~r·f 3"59 . September 17, 1986 Legal notice having been published in the Naples Daily News on September 14, 1986, as evidenced by Affidavit of Publication filed with the Clerk, public hearing was opened to consider the Final Budget. Tape fl DISCUSSION OF PROPOSED TAX INCREASE Budget Director Zalka said that the County-wide tax rate that is being proposed is 4.2318 mills, which is $4.23 per thousand in pro- perty value, representing a 26.3% tax increase. She said that there is also an aggregate tax increase and tax rate which reflects all of the taxes levied by the Board, which includes all of the MSTD's as well as the County-wide rate, and that aggregate is 4.6359 mills, which is a 23.3% tax increase. She noted thàt the 23% is smaller than the County-wide 26% due to the fact that there are some decreases in taxes in the street lighting districts. She reported that the 26.3~ increase will be used in two ways: (1) The capital budget which repre- sents almost 23% of the $5.9 million which will be for a pay-as-you-go Capital Improvement Program, to reduce the County's borrowing and debt service; (2) 3t% is for the General Fund, which is for all of the County services. Ms. Zalka summarized the events of 'this year's budget process, wherein tax notices were mailed advising of a proposed 35.1% tax increase; si~e then at the first public hearing the Board adopted . - some changes in the proposed budget based on detailed reviews which aocr. a97 PAC·f 3'61 Page 2 . · anDK 097 PAf.[ 3'G2 September 17, 1986 reduced the millage rate by about 4% so the 35.1% went down to about 3l%. She noted that since the first public hearing additional changes were made, primarily the re(unding of the Sales Tax Bonds, which reduced it 5%, and the increase is now at 26.3%. She recommended that the Board make two more changes to the budget that will n~ impact the millage rate; (l) The Tax Collector's budget was reduced $7,671 this date and she would like to amend the budget to reflect that change; (2) change the County Manager's administrative budget by deleting the position of Deputy Assistant County Manager, which will mean that the County'a Manager's increase of 20% will go down to 7% in order to save $30,000. PUBLIC COMMENTS Mr. George Williams said that at the previous public hearing he made his thoughts known and he wants to clear up something that may have been misunderstood. He said that he has no reason to question the professional competence of the Budget Director. He actually meant to compliment her. He requested that in the future the budget data that is studied be constructed to include comparisons with the latest actual figures. He urged the Board to use that comparison, with their very important non-political experience and their political savvy to see that the approved budget is at a level that will not increase pro- perty taxes. Ms. Agnes Myers requested that items not be abbreviated on the Tax Notices so that they could be understood. She voiced opposition to Page 3 .. - - .~ September 17, 1986 her proposed assessed valuation Commissioner Pistor said that Ms. Myers should register her dis- satisfaction with the Property Appraiser regarding her assessment, as that is not within the realm of the Board. Mr. Louis Carmer said that he is taken back by the recent events of the proposed tax changes in Collier County and that a lot of retirees cannot assume the increase. He said that the Board should consider the impact that it is going to have on them. He said that the people may reassert their ability to control their taxes. Commissioner Pistor explained the Capital Improvement Program and also the fact that the County is supporting the Drug Task ~orce. He said that the County has many requests for additional services and that they cannot do everything that everyone'wants and not have some tax increase. Mr. Carmer said that it is such a tremendous impact within one year and that all things should be considered. Commissioner Pis tor recalled that there was over $10 million when he first came on the Board and that has been used to try and prevent an increase, and that the County is now at the bottom of the spare funds. Mr. Arnold Lenski said that he is against the increase in taxes and he cannot live with the fact that he will have to pay the tax pro- posed. He ลก~d that he would have to sell a piece of his property to .. pay the taxes, and pointed out that there has been an increase for the anc( 097 PAGr 3'ô3 Page 4 . ---"".,,,",,"-..~-",,,.,,,,,,--.,,....,--,-"~,,---,,.,,,~,,,,- · ano( a97 Pi',f 3ô4 September 17, 1986 past six years. Mr. L~nski said that he is aware of people in Pine Ridge living in condos whose increase is only $14.00. He said that he called the Property Apprais~r's office and asked that someone be at this meeting to listen to the pleas and that no representiave is pre- sent. Mr. John Popovic, although registered to speak, declined~the opportunity. Mr. S. R. Hungerford said that people spend a lot of money in Collier County, and to raise the property taxes is going to drive the people to other places, He said that even though the Board has said they need this kind of money he does not believe that they need the kind of tax increase proposed. Mr. Brad Estes, President of the Naples Civic Association, said that they have approximately 1,500 members in the greater Naples area and he is representing the Board of Directors. He said that they are deeply concerned about the tax increase, and noted that he has pro- vided the Constitutional Officers and each of the Commissioners a .. :.... letter outlining their suggestions of how to reduce the increase. He said that they feel that there are surpluses in the budget; they sup- port the new programs; and they feel that there can be some cost- cutting measures from things that have been funded in the past. He asked that the Board adopt a budget incorporating their suggestions. Commissioner Hasse said that their letter had some vital spots but it came about three weeks too late. He said that he has no idea Page 5 .. - .. September 17, 1986 whether the things proposed could be done but he would hope that they could take a hard look at it in the future. He asked County Manager Lusk what he thought of the suggestions? Mr. Lusk said that he thought that there were some very good comments, noting that the County has only had a Budget Office for two years and he would look for the Budget Office to be able to do some of the things suggested for next year. Commissioner Hasse asked Mr. Lusk if he could make any cuts? Mr. Lusk pointed out that his budget represents only about 38% of the entire budget and 25-30% of that is for infrastructure construction. He noted that some of the recommendations were a way of budgeting for positions during the year and that should also be directed at the Constitutional Officers. He said that some òf the positions will be phased in, such as Parks & Recreation, but growth management people cannot be phased in. Mr. Lusk pointed out that of the 120 proposed positions, 60 of them are with the Sheriff's office. Mr. Lusk pointed out that the infrastructure of one mill is 23% of the 26%; the County is starting a new program; and that the Infrastructure Committee suggested 2 mills and the Board did not take their recommendation. Mr. Lusk said that one one side people are asking that the taxes not go up and on the other hand people are asking for more services and more services create more taxes. He pointed out that Mr. Estes' ." recommendati~ns amount to about $50,000 and that is not going to have much effect on the percentage. acc( 097 P\'·f 3'û5 Page 6 . ,--_.._.-."."~.."-~-,~~.._---,,-~.~,,,".,",_.-- · 097 p~f.\ 3GB September 17, 1986 Tape 12 Commissioner Hasse said that he is 8gonizing over the budget and is looking forward to an improvement next year. Commissioner Voss noted ·that the Board spent a lot of time in workshops and many months seeing where t~ey could cut the budget. In addition, he said that the Commissioners and Staff have spent many hours looking for places to cut. He said that the County is trying to play catch-up and Lhe only way to do it is to pay for it. Commissioner Pistor asked Ms. Zalka what could be done with the Contingency Fund and some two insurance items that they heard about today, and also a salary item that they heard about. Ms. Zalka reported that just a couple of days ago the County got a check from Workers Compensation for $112,000 which goes into the General Fund, and represents a participant's dividend. She said that was unbudgeted income and could be used to lower the taxes. She said that would make a t% reduct~on. Commissioner Pistor questioned an insurance report that the Board is to receive on Tuesday and Ms. Zalka said that they expect to save about $160,000 from what is budgeted, based on a liability and pro- perty insurance program, and if the Board adopts it on Tuesday they could save the $160,000. She said it is not definit~ yet and if the Board wants to take the risk she would suggest that they cut their reserve for conti~gency based on the anticipation that there would be some savings from insurance. She said that if they did not get the Page 7 - - - --'" , '__"__""'"~;'___''''''_'''''''..''"~'_''''''''''''_·''''"'",N''''''.'''''''_,~,_ September 17, 1986 savings from the insurance, the Contigency Fund would have to be guarded throughout the year and the Board would have to say "No" when agencies come in requesting new funds. She said that the Contingency Fund is set at $2.2 million and they could cut that by about $400,000 and set it at $1,8 million. Another proposal, she said, is from the Naples Civic Association which is that they budget turn-over. She said that they intend to insti tute a program where they keep track of this kind of turn-over so that it can be measured. She said they do not know the percent now, but they do know that it varies a lot. She pointed out that if the money is taken out it is a risk, because if the turn-over does not happen they have to look for ways to pay the people. Ms. Zalka said $140,000 could be saved if they have a 3' turn- over rate. She said that they would monitor that on a General Fund basis to be sure that they have a 3% turn-over in order to offset the reduction to reserve that is being discussed. She said that she does not have any records on history of turn-over in this County and she is basing her figure on the average traditional percentage of other coun- ties, and that she intends to work with Data Processing and Personnel to develop a system. Ms. Zalka suggested that they cut the reserve for contingency by $400,000 and absorb that by taking the risks of hoping that they have a $160,~0 savings from liability insurance; $l40,000 from a -.. 3% turn-over rate and an extra ~lOO,OOO from efforts to say "No" Page 8 anc~ 097 P c.[ 3ß7 . · 'OOK 097 Pl'.r 3G8 September 17, 1986 during the year when requests are received for new money. She said that this money will be a little bit from each organization in the County. Commissioner Pistor asked Ms. Zalka tf she has figures over the .. ~ past few years to show approximately what has been used from' Contingency? Ms. Zalka said that about $2 million is budgeted and about $1.2 million is used. She noted that insurance and overtime were big uses last year. Commissioner Pistor said that he talked with Sheriff Rogers and asked him how close he is to hiring the additional people and said that he has them about ready to come on board but he may possibly delay some of them. He said that they could ask the Sheriff to change his hiring plan for about a $lOO,OOO savings, noting that the Sheriff said that he would cooperate. Ms. Zalka said that they would reduce the Sheriff by $100,000 and that they could phase in their new positions. She said that they already recognize and expect $100,000 from them through attrition which is about l% which they program from them to return to the Board and this would bring them up to 2%. Ms. Zalka said that if the Board is going to take these risks and make this effort it should be shared throughout the budget. Commissioner Goodnight pointed out that if they cut contingencies and have a hurricane or some other kind of natural disaster, funds would have to be taken out of the Capital Improvement Program, which Page 9 .. - .. .-,.,.....""~.~......."-,--.""....~...- ..... ..""......___.~'M..._"."""~"..,,·.......,"",.._··_--~_··..,·_.."-- September 17, 1986 means that next year they would have to up the Capital Improvement Program funds. She said that if the public is willing to take that gamble, she is willing to go with it too. Also, she pointed out that the Growth Management Study has be~n mandated by the State of Florida. Revenue sharing has been cut, she said, which used to be almost $1 million and now it is not even in the budget. Commissioner Pistor pointed out that the money cannot be taken out of the Capital Improvement Program because it is all obligated. Mr. Estes said that they realize there is some risk involved and that they will publicly support the Board. Mr. Lusk advised Mr. Estes that the Infrastructure Committee, which consisted of some members of the Naples Civic Association, recommended 2 mills, he recommended a t mill,and the County is taking 1 mill, noting that no one from the Infrastructure Committee was pre- sent tonight to support the Board. He said that the Naples Civic Association also supported the Drug Task Force. He said that if something goes wrong he does not believe that Mr. Estes will be here next year saying that he supported the Commission. Mr. Voss pointed out to Mr. Estes that most of the increase is for the Drug Task Force and the infrastructure, which his Association has supported. Ms. Zalka said th~t at this point there would be a $400,000 reduc- ticn to the.reserve for contingencies, and all of the items that she suggested weré çuts of $642,000_which is a County-wide tax increase of aco~ 097 p~r" 369 Page 10 . _.",.."~.~"~_.".",.."-",-",,,-,.,~.,,,,_........,,,...~.",--_.....-~--_' · m~ 097 P~(.' 370 September 17, 1986 23.7%, about the same as last year. She said that the way that balan- ces out between capital and operating, is that basically it is 22.8% for the pay-as-you-go capital program and less than l% for the operating budget. ~- - Commissioner Voss said that the County is committed on the Capital Improvement Program and they have to come up with the money, and he pointed out that the Board has no control over 62% of the budget. He said that there are General Obligation Bonds, which were for parks, that the voters approved, and that the money for the Justice Center comes from sales tax, and the other indebtedness is to improve utili- ties and it is being paid for by user fees, not ad valorem taxes. Mr. Lusk said that the newspaper reports referring to the indebt- ness of the County is not true and that about $75 million of the debt referred to is in a New York bank that the County has never borrowed and may never borrow, it depends on whether or not the County goes on with the sewer projects, but the County does not owe a nickel of that money today. He said that the other $84 million is for a resource recovery plant that this County may never have. He said that if this County had a rating, which it does not, because they insure their bonds, they would find that this County is probably under-debted, which can be just as bad as being over-debted, because it means that a County has not kept up with its infrastructures. Commissioner Pistor said that he would go along with the figures that Ms. Zalka has presented, in view of the fact that the Sheriff has Page 11 - - - ..._,-",.,_.._...._-,-"~._......__....-~_._~-----~.- September 17/ 1986 offered to work with them in the phasing in of new employees. He said that they do have a tim~ limi t for preparing the Growth Management Study and if it is not done on time it could cut about $1-2 million from state and federal revenue sharing. Mr. Hungerford explained that he was a new resident and questioned if everyone is paying for the various lighting districts? Commissioner Pistor advised him that they are special lighting districts and the people living in the district pay for the lights. Mr. Williams urged the Board to reconsider whether or not it is wise and the best approach to go on the pay-as-you-go program for capital improvements. He said it is for long-term capital improve- ments, whereas a fairly substantial percentage of the population is retirees and they are being asked to pay instantly for lhings that will only benefit them for a few years. He said that the average length for bonds is about 25 years and it is a pretty good market now. He said that 10 years would be appropriate for the average citizen to pay for the imþrovements. 'l'ape f3 Mr. Lusk pointed out that if you have a $7 million project and bond it, it would cost $15 million. Commissioner Voss said that when they get something built it is obsolete, citing the new jail which is already too small. commissiQþer Goodnight moved, seconded by Commissioner Voss, to amend the Gener31 Fund budget by reduoing it by $675,789, which Page 12 !.ÐC~ 097 P~,f 371 . ~ '" .,,__.,_......_____.._--0... · aOOK 097 Plr,[ 372 september 17, 1986 carried 4/0. Ms. Zalka said that makes the tax rate increase 23.7% County-wide. Ms. Zalka read in its entirety the proposed resoluti?n adopting the 1986-87 millage rates. .. .... Commissioner Pistor asked Public Works Administrator to comment on the light district decreases. Mr. Archibald said that it was due to carry-over from the Districts. Ms. Zalka said that electricity rates have stabilized and they have not had the increase projected and they have been able to save that money and use the carry-forward from the prior year. She said if there is ever a surplus they reduce the taxes the following year. Commissioner Voss moved to adopt aesolution 86-171, adoptinq the 1986-87 millaqe rates to be. levied. commissioner Goodniqht seconded the motion which carried 4/0. Commissioner Voss moved, seconded by Commissioner Goodniqht and carried 4/0, that Resolution 86-172 adoptinq the 1986-87 final budqet, be adopted. See Pages ~ 377L- 38'7 Page 13 - - - September 17, 1986 *** There being no further business for the Good of the County, the meeting was adjourned at 8:50 P.M. by Order of the Chair. BOARD OF COUNTY COMMISSIONERS/ BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL a £t¡- ,.....~~.::',;~...... PISTOR, CHAIRMAN mE$:r(..··~·.·-. . . .·-vWS. .Q'.OILES, 'CLERK (4;~.~;¡.~ £}C. -~..... . ~;,!l)~ei:~~~~es approved by the Board or..t?e././'J:' 4~ liS presented ~ o~·· 'll/'~~~~ed ~.."....... ... '.. Page 14 &CC~ 097 P¡r.f 373' .