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BCC Minutes 09/08/2011 B (Budget)BCC BUDGET MEETING MINUTES SEPTEMBER 8, 2011 September 8, 2011 TRANSCRIPT OF THE BUDGET MEETING OF THE BOARD OF COUNTY COMMISSIONERS Naples, Florida September 8, 2011 LET IT BE REMEMBERED, that the Collier County Commissioners, in and for the County of Collier, having conducted business herein, met on this date at 5:05 p.m. in BUDGET SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Fred Coyle Jim Coletta Donna Fiala Tom Henning Georgia Hiller ALSO PRESENT: Jeffrey Klatzkow, County Attorney Leo E. Ochs, Jr., County Manager Mark Isackson, Director of Corporate Financial Planning Ian Mitchell, Executive Manager to BCC Page 1 COLLIER COUNTY Board of County Commissioners Community Redevelopment Agency Board (CRAB) Airport Authority AGENDA Board of County Commission Chambers Collier County Government Center 3299 Tamiami Trail East, 3rd Floor Naples, FL 34112 BUDGET SESSION September 8, 2011 5:05 AM Fred W. Coyle - BCC Chairman; Commissioner, District 4 Jim Coletta - BCC Vice - Chairman; Commissioner, District 5; CRAB Chairman Donna Fiala - BCC Commissioner, District 1; CRAB Vice - Chairman Georgia Hiller - BCC Commissioner, District 2 Tom Henning - BCC Commissioner, District 3 NOTICE: ALL PERSONS WISHING TO SPEAK ON AGENDA ITEMS MUST REGISTER PRIOR TO SPEAKING. ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEEDING PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. ALL REGISTERED SPEAKERS WILL RECEIVE UP TO THREE (3) MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN. Page 1 September 8, 2011 COLLIER COUNTY Board of County Commissioners AGENDA Thursday, September 8, 2011, 5:05 P.M. BUDGET SESSION NOTICE: ALL PERSONS WISHING TO SPEAK ON AGENDA ITEMS MUST REGISTER PRIOR TO SPEAKING. ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEEDING PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. ALL REGISTERED SPEAKERS WILL RECEIVE UP TO THREE (3) MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN. 1. PLEDGE OF ALLEGIANCE 2. ADVERTISED PUBLIC HEARING — Pelican Bay Services Division Budget Hearing: A. Executive Summary — Fiscal Year 2012 Pelican Bay Services Division Budget B. Public Comments C. Resolution Approving the Special Assessment Roll and Levying the Special Assessment against the Benefited Properties within the Pelican Bay Municipal Service Taxing and Benefit Unit. 3. Adiourn Resolution 2011 -137 Adopted - 510 Page 1 September 8, 2011 YOU ARE ENTITLED, AT NO COST TO YOU, THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY FACILITIES MANAGEMENT DEPARTMENT LOCATED AT 3335 EAST TAMIAMI TRAIL, SUITE 19 NAPLES, FLORIDA, 34112-5356,(239) 252 -8380; ASSISTED LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN THE COUNTY COMMISSIONERS' OFFICE. 1. ADVERTISED PUBLIC HEARING - BCC - Fiscal Year 2012 Tentative Budget A. Discussion of Tentative Millage Rates and Increases Over the Rolled Back Millage Rates Presented B. Review and Discussion of Changes to the Tentative Budget C. Public Comments and Questions: a) Kathleen Reynolds — Subsidized Child Care b) Kathy Parker — Radio Road Beautification D. Announcement of Tentative Millage Rates and Percentage Changes in Property Tax Rates Read into the Record E. Resolution to Adopt the Tentative Millage Rates Resolution 2011 -138 Adopted - 510 F. Resolution to Adopt the Amended Tentative Budget Resolution 2011 -139 Adopted - 4/1 (Commissioner Hiller opposed) G. Announcement of Final Public Hearing as Follows: Final Public Hearing on the FY 2011 -12 Collier Countv BudLyet Thursday, September 22, 2011, at 5:05 p.m. Collier County Government Center W. Harmon Turner Building (F) Third Floor, Boardroom Naples, Florida 2. ADJOURN Page 2 September 8, 2011 September 8, 2011 MR. OCHS: Mr. Chairman, you have a live mic. CHAIRMAN COYLE: Ladies and gentlemen, the budget hearing meeting is now in session. Will you please stand with me for the Pledge of Allegiance. (Pledge of Allegiance was recited in unison.) CHAIRMAN COYLE: Thank you, and welcome. County Manager Ochs? MR. OCHS: Mr. Chairman, members of the Board, welcome back. Hope you all had a relaxing and enjoyable summer break. It's good to see you all. And with that -- CHAIRMAN COYLE: You don't really mean that. MR. OCHS: With that we're going to launch right into the first of two required advertised public hearings to consider your fiscal year 2012 budget. Item #2C — Pelican Bay Services MSTBU RESOLUTION 2011 -137: RESOLUTION APPROVING THE SPECIAL ASSESSMENT ROLL AND LEVYING THE SPECIAL ASSESSMENT AGAINST THE BENEFITED PROPERTIES WITHIN THE PELICAN BAY MUNICIPAL SERVICE TAXING AND BENEFIT UNIT — ADOPTED MR. OCHS: First item of business on your agenda under tab two is the consideration of the Pelican Bay Services Division budget for fiscal year 2012. Neil Dorrill is here to present the budget and respond to any questions the Board may have. CHAIRMAN COYLE: Okay, Mr. Dorrill? MR. DORRILL: Commissioners, good evening. CHAIRMAN COYLE: Good evening. MR. DORRILL: Following your workshop and a particular question or two, Commissioner Hiller had asked for a separate Page 2 September 8, 2011 briefing on this budget. This budget is essentially a maintenance level budget for the coming year with one exception that I'll talk to you about in just one second. This budget is in two parts. There is an assessment that utilizes the uniform method of assessment established for all governments in the county for operations and maintenance and capital. And then, as has been your custom and that of your predecessor since I believe 1975, street lighting activities have been ad valorem based and through a separate MSTD. And so there is an assessment component which is a flat assessment for maintenance and capital, and then there's an ad valorem based component for street lighting. The one increase this year that I would like to bring to your attention pertains to the street lighting budget that results in an increase in millage from .05 to .08 mills. And the sole purpose of that is based on an adopted community -wide capital improvement program where they are beginning to plan for and accumulate cash to replace their extensive street lighting network within five to seven years. And as a result of that, the increase in millage of about $163,000 will be put in a restricted capital reserve account. And otherwise, the net operating increase in this year's budget is down about $11,000. With me this evening is our new chairman, Keith Dallas. For those of you who do not know Mr. Dallas, very dedicated. And I can tell you, you have an 11- member board there. And old city and County Manager Leo will tell you that the ideal size board is three, five is tolerable, 11 can become a mob at times. But that board is very harmonious and has representation from the commercial interest in the community. They work very hard on your behalf. And we have just appointed a new member, and she'll be at the next meeting, and that will return our board level staffing to full staffing. We've had a vacancy there for some time. I'd be happy to answer any other questions. CHAIRMAN COYLE: Board members have any questions? Page 3 September 8, 2011 (No response.) CHAIRMAN COYLE: Are there any public speakers? MR. MITCHELL: Sir, we've got public speakers, but all the public comment was going to be Item B. CHAIRMAN COYLE: Okay. So there's no one here who wants to address -- MR. DOYLE: I submitted. CHAIRMAN COYLE: Your name, please? MR. DOYLE: Joseph Doyle. CHAIRMAN COYLE: Okay, Mr. Doyle, why don't you come up. You can take either of the podiums. MR. DOYLE: Yeah, Joseph Doyle, Laurel Oaks and Pelican Bay. And I've actually been part of the process now since I addressed this board last year. I submitted a letter dated July 1 st, hand delivered to the Chairman, the clerk and also mailed to District 2 Commissioner Hiller. You've already had it, but I just want to reiterate my position on this, which is there actually is an increase in the special non -ad valorem assessment from $370 to $398 this year per residential unit. And then also the street lighting issue that Mr. Dorrill mentioned. I feel that as far as it goes for the street lighting, I don't believe that that money should be collected in advance. They don't plan to do anything with street lighting really until the year 2018, so I don't believe that they should be collecting that from current residents. I think that they should collect it from the residents who are living there at that time. And if they need to do a bond issue, so be it, and pay for it that way. As far as the regular non -ad valorem special assessment, the increase to $398, I believe that they should really try to stay with the 370 that we had last year and no increase. You know, our Sheriff has been able to reduce his budget, so I September 8, 2011 don't know why Pelican Bay cannot also keep their budget in line, especially with what's going on in this economy. So I'm asking this board to prove no non -ad valorem assessment and keep it at 370 as it was last year, and to not approve the special lighting fund increase. Thank you. CHAIRMAN COYLE: Thank you. MR. MITCHELL: Sir, the next speaker will be Sandra Doyle. MRS. DOYLE: I'm going to pass on that, because he's already said -- I'm with him and he spoke just what I would say. And I think we're paying enough in taxes and the country's going bankrupt and I -- CHAIRMAN COYLE: If you're going to speak, we have to get you on the mic. up here. MRS. DOYLE: Yeah, I feel -- I feel that I can't pay any more taxes. I'm on a limited fixed income. And I'm not giving my woes to everybody, but everyone has to cut their budget, including starting right with the federal. And we heard our good Sheriff, our wonderful Sheriff here last night tell us how he was going to have to stand and cut his budget. And God only knows, we need a lot of protection with some of the criminals that are out there. It's despicable. So -- and I'm just asking you to listen to what my good son has imparted to you. Thank you. CHAIRMAN COYLE: Thank you. Okay, Commissioner Hiller? COMMISSIONER HILLER: Mr. Dorrill, could you please address the concerns of the constituents? Can you hear me? MR. DORRILL: Yes. COMMISSIONER HILLER: Is the mic. working? Can you please address the concerns of the constituents that just expressed their wish to see number one, the street lighting reserves delayed until the time that the lighting is needed? And can you explain the rationale and how you're building these reserves over time and why it has to be done in the fashion that it's being done? And can Page 5 September 8, 2011 you also explain why there is the increase and why there are no cuts? MR. DORRILL: The first question pertaining to street lighting, as has been the county's policy since I believe 1975, street lighting budgets are ad valorem or millage based as opposed to a flat assessment. And so this street lighting district is the same as any of those that still exist in the county. The community, through both the foundation and the services division, went through an exhaustive capital improvement planning process that took the better part of a year, and they have identified all of their long -term redevelopment and renovation projects for the foreseeable future. And one that is of particular concern to them is to replace both the street light poles and the fixtures and not incur any debt. And I might add that the gentleman who spoke is extremely well informed. He comes to I believe most if not all of our meetings, and from my perspective is a model citizen who chooses to participate in the level that he does. In this particular instance, it was the unanimous vote of both our budget and finance committee, as well as the entire at that time 11- member board to set -- to raise and set these funds aside in order to be able to pay for these replacements within five to seven years with cash and not to incur any commercial paper debt. I don't believe the size is sufficient to have any sort of bonded program. The second aspect, it's my understanding -- I've only been with you for two years. But it's my understanding that if you look back within the last three to five years, that this assessment rate has come down. And there are no new positions. There have been increases in particular on the fleet management site and also the group help benefit site that you're going to see throughout the evening as you look at other county divisions and departments. Those are the principal two areas that are there. All other programs are at the same maintenance level that they have been for the past couple of years. Page 6 September 8, 2011 CHAIRMAN COYLE: Okay. Commissioner Henning? COMMISSIONER HENNING: I can understand his comments. Your overall budget is up six percent. And in these economic times I think his comments are very apropos, and I don't know why we can't try to keep it at least neutral from what it was last year. CHAIRMAN COYLE: Okay. Any other questions or comments? Commissioner Hiller? COMMISSIONER HILLER: Mr. Dorrill, can you explain why you can't keep the budget neutral? I mean, is there a reason that, you know, is -- makes it impossible for you not to be budget neutral this year? MR. DORRILL: In order to be budget neutral in the overall budget, the overall budget is $4.1 million. The special assessment portion of that is two and a half million dollars. And then there's approximately a half a million dollars in the street lighting program. The balance of that are transfers. The net operating budget is $2.6 million this year. That's actually a decrease in our operating budget. The increase that is flowing through our budget, though, is attributable again to reserving cash for future capital improvements and to absorb increased allocated cost, both on the fleet side, as well as the group health insurance side are the two principal areas. CHAIRMAN COYLE: Commissioner Fiala? COMMISSIONER FIALA: Yes. Neil, it just seems to me as I'm just trying to look at the overall picture, it seems that most everybody in Pelican Bay, at least all on these committees, have -- they're the ones that proposed this, they're the ones that want to put aside the money, and they're the ones that are asking to do this. And I don't see -- other than Mr. Doyle, I don't see anybody in opposition. So my guess is if they have decided that they want to save up the money and put it aside now -- because they do want to look like a Page 7 September 8, 2011 premier community. They don't want things to run down, they want to replace when they need to be replaced. And I understand that. I mean, I would be proud to live in Pelican Bay, and I'm sure you are. So, you know, I would think that we should go with their desires, if this is what the Board suggests. So I'm going to make a motion to approve. COMMISSIONER COLETTA: I'll second the motion. CHAIRMAN COYLE: Okay, motion to approve the Pelican Bay budget by Commissioner Fiala, second by Commissioner Coletta. Is there any further discussion? COMMISSIONER COLETTA: If I could? CHAIRMAN COYLE: Okay, go ahead. COMMISSIONER COLETTA: I just wanted to say that I -- normally I would say roll it back to zero. But you have a very wealthy community, they know what they want. You have an advisory board that's been sticking by you through this, and they've made the decisions. And, you know, I can't think of a better form of self - government than what we see, and I'm not about to jump in front of them at this point in time. CHAIRMAN COYLE: All in favor of the motion, please signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. CHAIRMAN COYLE: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER COLETTA: Aye. CHAIRMAN COYLE: Any opposed, by like sign. (No response.) CHAIRMAN COYLE: Okay, the motion passes unanimously. MR. DORRILL: There's also an associated resolution. I'll defer to the manager. But at the appropriate time there will need to be a motion to authorize the Chairman to execute the resolution that September 8, 2011 establishes the rate of assessment. The millage will be dealt with separately. CHAIRMAN COYLE: Okay. We want to do that resolution now separately from the county budget, or -- MR. OCHS: No, sir, we'll roll that into the -- CHAIRMAN COYLE: Okay. MR. OCHS: -- resolution of the Collier County -- CHAIRMAN COYLE: We'll do that at the end of the budget hearing. MR. DORRILL: Thank you again. And thank you for the courtesy of allowing Pelican, as has been your custom, to go first this evening. CHAIRMAN COYLE: Thank you, Mr. Dorrill. MR. OCHS: Commissioners, that takes us to the next tab in your budget book, which is your Collier County budget. As I mentioned earlier, Commissioners, this is the first of two statutorily required public hearings to consider and adopt your fiscal year 2011 budget. I would turn the microphone over to Mr. Isackson right now that's going to take you through the process, as outlined by the state, to go through this evening. MR. ISACKSON: Commissioners, good evening. For the record, Mark Isackson with the County Manager's Office. There's a number of items I have to put on the record. And if you'll indulge me, I'll begin by welcoming the public, members of the audience and the Commissioners to our first of two public hearings of the Collier County government fiscal year 2012 budget which begins October 1, 2011 and runs through September 30th of 2012. Public budget hearings in September must follow a specific format pursuant to TRIM guidelines. Your agenda contains the specific sequence of agenda items to be covered. Pursuant to statute, this hearing was advertised as part of the Page 9 September 8, 2011 TRIM notice mailed to all Collier County property owners. A final hearing is two weeks from tonight, or September 22nd, 2011. This hearing will be noticed as part of the statutory advertisement requirements contained in the Truth and Millage Statutes. The budget notice ad will appear in the Naples Daily News on September 19th, 2011. Final tax rates and budget decisions will be made at this final hearing on September 22nd, 2011. Agenda and speaker slips are available in the hallway. Anyone interested in addressing the Board of County Commissioners regarding the county budget must complete a speaker slip. Mr. Ian Mitchell will collect the speaker slips. Ian, you want to raise your hand so everybody knows where you're at? Thank you. Following some introductory remarks regarding tax rates and the changes to the tentative budget released in mid July, there will be an opportunity under agenda Item 1.0 for public comment. Speakers will be called by name. As a public service announcement, the individual property owner TRIM notices contain information pertaining to market value and a point of contact at the Property Appraiser's Office, through which questions could be addressed. In addition, there was a notation indicating that a petition for adjustment of market value is available through the Property Appraiser's Office. And this petition must be filed with the Property Appraiser by close of business 5:00 p.m. on Friday, September 16th, 2011. Commissioners, agenda Item 1.A is a discussion of the tentative millage rates and increases over the rolled back millage rate. The rolled back millage rate by state law is the increase in millage over the rolled -back rate needed to fund the budget. State law requires that the first substantive issue to be discussed at the hearing is a percentage increase in the millage over the rolled back rate needed Page 10 September 8, 2011 to fund the budget and the reasons ad valorem tax revenues above rolled back, as calculated on the state's DR -420 forms are being increased. Again, rolled back rate is defined as that tax rate necessary to raise the same amount of ad valorem tax revenue raised in a previous year. The calculation of a rolled back rate does not account for new construction. The Board - adopted budget guidance for fiscal year 2012 included a millage neutral position for the general fund and the unincorporated area general fund. The fiscal year 2012 tentative general fund and unincorporated area general fund budget as presented is based upon a millage neutral tax rate. Neither of the criteria mentioned above applies to the fiscal year 2012 Collier County budget, based upon the TRIM statutory definition of an ad valorem tax increase above the rolled back rate. Referring to Exhibit 1 -A, each Collier County taxing authority, exclusive of debt service, exclusive of voter approved millage rates for operating in debt, and exclusive of the Pelican Bay MSTU /BU has proposed a millage rate, either rolled back or below the rolled back rate. Budget guidance provide that millage neutral tax rate positions would be taken in the general fund and the unincorporated area general fund. Further, MSTU tax rates would be set between millage neutral and tax neutral, based upon the respective advisory board recommendations. MSTU tax rates where no advisory board exist would be set at millage neutral or below. The accumulative aggregate rolled back tax rate for all Collier County taxing authorities, exclusive of debt service, totals 4.5149 for $1,000 of taxable value. The proposed aggregate tax rate for all Collier County taxing authorities, exclusive of debt service, is 4.3299 per $1,000 of taxable value. And this represents a decrease of 4.1 percent. Page 11 September 8, 2011 Commissioners, I'll stop there. Any questions under Item LA, please? CHAIRMAN COYLE: There appear to be no questions. MR. ISACKSON: Item 1 -B -- CHAIRMAN COYLE: Just a moment. MR. ISACKSON: Excuse me, I'm sorry. CHAIRMAN COYLE: Commissioner Henning? COMMISSIONER HENNING: When do we talk about the Constitutional officers' budget? MR. OCHS: Commissioners, Constitutional officers were part of your June budget workshop. They were here and answered questions. The Sheriff, the Clerk of the Courts and the Supervisor of Elections were all here to present their budget and respond to questions during your workshop. They're -- COMMISSIONER HENNING: Well, here's the problem with the process. We have -- we get our budget books 10 days prior to the hearing. And then we had -- the same week we also had a BCC meeting. So we're trying to cram a whole bunch of stuff in before we go on vacation. It is impossible, it is impossible to study that and comprehend it. And I always thought that the budget process, it is a hearing, it's not adoption, everything is on the table until it's adopted by the Board. MR. OCHS: That's correct, sir. COMMISSIONER HENNING: Okay. So either we need to change the process if we're not going to talk about it until the final vote next year, or we're going to have to allow to start discussing these items before it is adopted. So what do you want to do? Very simple. COMMISSIONER FIALA: Didn't we discuss it already? COMMISSIONER HENNING: We had a presentation. There's no way that you can study the whole budget within 10 days and besides a regular meeting. It's impossible. Page 12 September 8, 2011 COMMISSIONER FIALA: I thought -- I'm sorry if I just jump in, but I thought we got those books plenty in advance. I mean, they were bringing them -- it wasn't just 10 days. I mean, we had them quite a bit in advance. COMMISSIONER HENNING: It was 10 days. I have questions CHAIRMAN COYLE: Could I ask a question? COMMISSIONER HENNING: I can vote no about it and just put it in the public record in the media, or we could discuss it. CHAIRMAN COYLE: Well, can I get a clarification, Commissioner Henning? What is it you want to discuss? Is it the county's budget or is it the constitutional officers' budget? COMMISSIONER HENNING: The county's budget. CHAIRMAN COYLE: The county's budget. We've been working on the county's budget since April of this year. COMMISSIONER HENNING: Well, the staff has. When did you get your budget book? You got it 10 days prior so you could study it, you know. CHAIRMAN COYLE: Well, I got mine in plenty of time to understand what was going on here. We've established budget guidance. We told the staff to adhere to the budget guidance. The staff did so. They came, back and reported to us where they had trimmed costs. And -- COMMISSIONER HENNING: So you don't want to discuss it? CHAIRMAN COYLE: No, I'll be happy to discuss it. You want to discuss it, discuss it. The point is don't assume that the rest of us haven't done our job, okay? COMMISSIONER HENNING: Well, I stated in the meeting that there's -- because of the regular meeting that I did not have time to study the whole budget, and I am going to further study it and I have questions. Page 13 September 8, 2011 CHAIRMAN COYLE: Okay, then I would -- COMMISSIONER HENNING: And it's on the record. CHAIRMAN COYLE: -- suggest that you ask your questions. But in my opinion the budget was prepared in sufficient time to provide me with everything I needed to understand where the money was being spent and whether or not it adhered to our budget guidance. I did not have a problem with that. But if you have a problem and you need to ask some questions, I would suggest you ask your questions. COMMISSIONER HENNING: I don't have a problem, I have questions. CHAIRMAN COYLE: Then ask your questions. But first Commissioner Coletta has something. COMMISSIONER COLETTA: Nothing too much more to add, other than the fact that we're here to accommodate every commissioner, whatever level he needs to do it, and I welcome Commissioner Henning's questions. Please go ahead. COMMISSIONER HENNING: Okay, public utilities -- and I brought this up the previous budget hearing. Public utilities, they have two reserve funds. They have reserve for contingency and reserve for cash flow. And this year it is -- reserve for contingencies is up 19 percent, and reserve for cash flow is up 3.4 percent. And historically it has been ratcheting up. Contingency reserves in 2010 was $13 million. This year, up from last year, up 19.1 percent. The reserve for cash flow is ratcheting up again, but yet we have less call for service. And I would like to seriously cut that tremendously. You're cutting down the transfer into your debt service by 25 percent. You should -- we should at least cut down those two funds. And by the way, I don't know how you justify two reserve funds when all the other departments only have one. I would like to see Page 14 September 8, 2011 those cut down at least 25 percent. And I'll make that motion. MR. WIDES: Commissioners, for the record, Tom Wides, Operations Director for Public Utilities. Commissioner, first off, to respond to the whole nature of the utility, and looking at all the reserve components, in fact we have reduced our reserves for public utilities for all reserve components: Reserve for contingencies, reserves for cash flow, and those are the two biggest. We went from 103.1 million last year, FYI I. to 86.8 million in FY 12's budget. That is a reduction of $16 million. Now, the reserves for contingencies are used for unforeseen events, okay. The reserves for cash flow are used under statutory guidelines and set under statutory guidelines. So -- and lastly, the other divisions I believe do have both of those components. COMMISSIONER HENNING: Which divisions are you talking about? MR. WIDES: I can look through the budget book and check that for you. COMMISSIONER HENNING: I know that in public utilities It does. MR. WIDES: Yes. In solid waste and in the water /sewer district. COMMISSIONER HENNING: Right. MR. WIDES: Okay? And I'd have to check with our O &B, but these are not unusual reserves that we're creating here. But again, my point is we took a $16 million reduction in reserves to fund our programs from FYI I to FYI 2. COMMISSIONER HENNING: You're -- actually we have on the agenda, you're going to retire a bond issue early. MR. WIDES: No, sir. That executive summary that is on the agenda for next Tuesday is to pay down or buy down the rest of that Page 15 September 8, 2011 bond. We issued a bond for $112 million five years ago. The terms of that bond say we have to use those funds from that bond within five years. This is our fifth year, so we're taking the last 670 some thousand dollars and we're using that money towards a project. But we are not buying down anything early. COMMISSIONER HENNING: Okay. Well, thanks for the correction. I have -- I did send an e-mail out for questions on that. The -- your -- you have a transfer from the user fees into debt, and last year it was $9.6 million, this year it's $7.1 million. What are you using the other $2 million that you have to rachet up these other contingency reserves? MR. WIDES: Sir, can you refer me to a page number, please? COMMISSIONER HENNING: Twenty- seven. MR. WIDES: Twenty- seven? Okay, yes, the transfer to 410, that's what you're referring to, went to $9.6 million to 7.1; is that correct? Is that what you're reading? COMMISSIONER HENNING: Yes. That's the transfer into the debt service, the capital debt service. MR. WIDES: Yes, sir. COMMISSIONER HENNING: Okay. MR. WIDES: Go ahead. COMMISSIONER HENNING: Now, if you go down two lines, reserve for contingency is actually going up a million dollars, or 19 percent. MR. WIDES: Uh -huh. That is correct. What we're simply doing here, sir, is we're balancing between the reserves and the Fund 408, which is our user fee fund where all the money goes in. And we simply balance it out to the various funds, which includes our capital funds and our debt service funds. So what we're able to do this year is we're able to take $7 million, Page 16 September 8, 2011 bring it across from the user fee fund and take $2 million from reserves to fund the rest of the debt service payments. So we're trying to balance the program. But this is a very comprehensive program. COMMISSIONER HENNING: The -- not everything goes into the user fee -- I mean, you have a separate line item for impact fees, correct? MR. WIDES: That is correct, sir. COMMISSIONER HENNING: Okay. And obviously that's not coming in like it has been, so we have to use user fees to cut the debt. MR. WIDES: That is correct. COMMISSIONER HENNING: With no payback. MR. WIDES: We don't know when there will be a payback. We know what's going on with the economy, and when we expect to pay that back, we don't know. COMMISSIONER HENNING: You have almost a $12 million cash flow for reserves. Is that to pay bills? MR. WIDES: That is to pay bills. In its simplest form, that is to pay bills. That is part of our statutory requirement to -- COMMISSIONER HENNING: I know, but there's no line items for that. There's no line items. I mean, it's just a reserve, just in case we need it. MR. WIDES: Sir, absolutely. And I can show you that we've got $74 million in total in reserves. And I can show you how we're going to use that in the next three or four years. This is not a one -year program, this is a five -year program. COMMISSIONER HENNING: The statutory requirements that you're referring to, is that the special act that was passed, I don't know, 2004? MR. WIDES: No, sir, that's not the special act. That's the general guidelines that we operate under for the state, that literally all the departments operate under for the state. COMMISSIONER HENNING: What statute? Page 17 September 8, 2011 MR. WIDES: Mark, can you help me with that? COMMISSIONER HENNING: You know what? You don't have to answer that now. If you give it to me in the future, I would appreciate that. Same this with -- Mr. Wides, you do solid waste? MR. WIDES: Yes, sir, I am familiar with solid waste. COMMISSIONER HENNING: The -- there's a decrease in residential curbside collection, municipal collection, of 3.7 percent, and a 5.7 percent decrease in residential curbside collection. But the actual budgeting has gone up 4.3 percent. MR. WIDES: Yes. And I'll ask Mr. Rodriguez, the director of the solid waste department, to address that specifically. COMMISSIONER HENNING: And your carryforwards are going up. MR. RODRIGUEZ: Hello, Commissioners. For the record, Dan Rodriguez, your Solid Waste Management Department Director. Commissioner, if you could repeat your question for me one more time? COMMISSIONER HENNING: Well, it was a statement. But, you know, your request for service is going down but yet your budget is going up. MR. RODRIGUEZ: You're referring to a certain page number, Commissioner? Actually, the accounts, the residential accounts are still increasing. COMMISSIONER HENNING: I'm looking at Page 39 and it says there's a decrease in residential curbside municipal solid waste ton and a 5.2 decrease in residential yard waste tonnage. MR. RODRIGUEZ: That's correct. That was the FYI this year. COMMISSIONER HENNING: Okay. And are you expecting it to go -- MR. RODRIGUEZ: Yeah, the cost for per ton are actually going Page 18 September 8, 2011 up because of the increase in cost for disposal. The CPI is what dictates the increases for our cost -- or payment to Waste Management. It's based on the July CPI for disposal. COMMISSIONER HENNING: And that's 4.3 percent? MR. RODRIGUEZ: 4.12 percent increase. COMMISSIONER HENNING: CPI? MR. RODRIGUEZ: Yes. For July. And that takes effect in January. COMMISSIONER HENNING: And that's going to be in our second meeting in September we're going to discuss that? MR. RODRIGUEZ: Yeah, when we establish the countywide rates for disposal, tipping fees and collection. COMMISSIONER HENNING: Okay. Thank you. CHAIRMAN COYLE: Okay, thank you. What's next, County Manager? MR. ISACKSON: Commissioners, Item LB on your agenda is a discussion of changes to the tentative budget. Let me just go through a progression for you. You got your adopted -- you got your workshop budget book in June. On July 15th you received a copy of the tentative budget. The workshop budget book was based on June taxable values, the workshop budget books based on July taxable values. The tentative budget that's before you this evening has a number of changes relative to the document that you got on July 15th. That, coupled with any subsequent changes that were made by the Board on July 26th, actions at the Board meeting of the 26th and what staff might be termed regular budgetary impacts and staff recommended budgetary actions related to routine revenue expense adjustments are filed in Exhibit I.B. Those are on Pages 6 through 59 of your book. A summary of these actions are described within Item I.B. Pages 1 to 5. The most noteworthy is the customary submittal of the tax Page 19 September 8, 2011 collections budget. This is the Department of Revenue on August 1 st. And inclusion of this budget is part of the first public hearing. According to the Tax Collector Statement of Commissions and Expenditures, the fiscal year ' 12 budget totals $17,436,000 and is offset by service commission charges. The Tax Collector is a fee based operation. This year's budget represents a decrease of 9.6 percent from fiscal year 2011. Turnback from the Tax Collector is significant each year and represents excess commissions over actually expenses to run the operations. Turnback from the Tax Collector for the past two fiscal years, '09 and ' 10, has totaled 7,656,773 and 7,122,337 respectively. The vast majority of fund changes contained within the amended tentative budget pertains to setting up appropriations necessary to fund the employee health insurance, co -pay increase offset and the limited vacation sellback. Additional changes were noted in the cover memorandum from County Manager Ochs, as well as what's contained in your summary that I previously discussed with the Board. Cumulative changes to the fiscal year '12 July tentative budget was contained within the enabling resolutions totaled $24,370,100 of which $17,436,000 is attributable to the Tax Collector's budget submittal. The remaining $6,934,100 is outlined within the summary of changes. These actions do not affect the maximum millage rates set by the Board on July 26th, 2011. Commissioners, I'll entertain any questions or comments on those changes that are contained and presented to you this evening. CHAIRMAN COYLE: Commissioner Henning? COMMISSIONER HENNING: There's a notable change, in my opinion. It's $1.2 million for the East Naples park, Eagle Lakes Park. Did you see that? Page 20 September 8, 2011 COMMISSIONER FIALA: Uh -uh. COMMISSIONER HENNING: No? COMMISSIONER FIALA: I saw the 450,000 for Eagle Lakes Community Park. COMMISSIONER HENNING: 425,000. COMMISSIONER FIALA: Yeah, 425, I'm sorry. Yeah, I did see that. COMMISSIONER HENNING: Page 4. COMMISSIONER FIALA: Well, I did see it and I already called Marla and talked to her about it. I wanted to know. But what she took it out of was I guess they have to meet the CDBG grant funding and that was their part that they have put into reserves to put forth that, and so that's what she was doing there. COMMISSIONER HENNING: The -- I think the other notable one is the MS capital improvement to replace the aging vehicles. MR. OCHS: Yes, sir. COMMISSIONER HENNING: I think that's all good stuff. At least the concern of the Board. CHAIRMAN COYLE: Okay, Commissioner Hiller? COMMISSIONER HILLER: At the last workshop we had discussed funding of economic development. And that was going to be deferred to this meeting. And I've noted that you've incorporated some changes related to that. Would you like to describe them? MR. OCHS: Yes, Commissioner, thank you. At the June budget workshop I had proposed that the annual receipts that the Board will begin to receive in fiscal '12 that represent a portion of the winnings from the casino gambling operation that Seminole Indians run, that's specified in the state statute and in the compact between the State of Florida and the casinos, provides that local governments get a small percentage of the annual winnings. That was projected to be about $330,000 in fiscal year'12. It would be the first year of a full year's receipt. Page 21 September 8, 2011 And the proposal that I made or the recommendation that I made to the Board in June was that in an effort to try to create a recurring source of non -ad valorem funding to help pay for future economic incentives, if the Board was so inclined to continue to offer a program of economic incentives, you may want to consider a separate fund for that money that would be used specifically for economic incentive payments to businesses in the county that you thought provided a meritorious application for expansion, or a new business that may want to come in and apply for one of our programs. I thought the advantages were that it's not ad valorem, it's a recurring source. Many of the people that go to the casino aren't even full -time county residents, so you're getting the benefit of proceeds coming in from people outside the county. And it was simply a proposal. It's in the budget in a separate fund, earmarked for that purpose. If the Board doesn't want to do that, we simply take those funds and move them back into your general fund reserves, Commissioners. CHAIRMAN COYLE: Just a side comment, and then I'll return to Commissioner Hiller. We will have the opportunity to make a decision on the use of those funds after we hear the presentation from the EDC concerning their strategic reorganization and that sort of thing. So it's probably premature to try to decide that those funds won't be used for that particular purpose until after we hear that presentation. Is that a fair statement? MR. OCHS: Yes, sir. I'm sure that will be part of that discussion and presentation on the 23rd of this month. CHAIRMAN COYLE: Okay. Commissioner Hiller, go ahead. COMMISSIONER HILLER: So if I understand correctly, what we're going to do is we're going to table the discussion on economic incentive funding and funding of the EDC to the next workshop after we hear the presentation by -- at the EDC workshop? Page 22 September 8, 2011 MR. OCHS: Well, no, ma'am, unfortunately your second budget hearing is on the 22nd of September. The workshop is the next day, on the 23rd. COMMISSIONER HILLER: So the timing doesn't allow us to do what Commissioner Coyle is suggesting. MR. OCHS: Well, the other way we could approach it is we could move this back into your ad valorem 001 general fund reserves, if you want, and then if you decide to use it for that purpose, reestablish that fund at a later date, Mark? MR. ISACKSON: Remember, Commissioners, just because you have an adopted budget doesn't mean that you have to keep that budget going through the year. If you make policy decisions at this dais, you can always amend and change your document. COMMISSIONER HILLER: We understand. Does the -- just going back to the EDC, does the numbers that you have as currently amended incorporate funding for salaries of the EDC? MR. OCHS: Yes, ma'am. There's $400,000 -- COMMISSIONER HILLER: That's been allocated back to the EDC for next year? MR. OCHS: Yes, ma'am. COMMISSIONER HILLER: So that hasn't changed? MR. OCHS: No. CHAIRMAN COYLE: Once again, we'll have the opportunity -- MR. OCHS: Yes, sir. CHAIRMAN COYLE: -- again to make a policy decision as to whether or not we pursue that. MR. OCHS: If they decide as a matter of policy they no longer want to do that, we'll simply amend the budget to reflect that. CHAIRMAN COYLE: Commissioner Hiller, more? COMMISSIONER HILLER: I remain concerned about the impact fee funds and the funds that the general fund may well owe or Page 23 September 8, 2011 as I believe owe, the impact fee funds as a result of waivers that have been granted to select companies. And I think the number was somewhere in the range of what has already been expended of about 2.4 million and a possible additional 500,000, so close to three million. Has that been contemplated anywhere? MR. OCHS: I'm not sure I totally understand your question. COMMISSIONER HILLER: Have any of the changes considered reimbursing the impact fee funds for the waivers that were granted? MR. OCHS: No; ma'am. I don't know that -- COMMISSIONER FIALA: Waivers for affordable housing? COMMISSIONER HILLER: No, they actually -- there were waivers for commercial redevelopment. COMMISSIONER FIALA: To go into buildings that had already paid for their impact fees. COMMISSIONER HILLER: And then what they did was they actually waived the delta between the increase in the impact fee over and above what had already been paid. COMMISSIONER FIALA: Actually, I don't think they were even supposed to pay anything. Because we were trying to encourage some of those buildings to -- COMMISSIONER HILLER: That's the waiver. COMMISSIONER FIALA: -- to continue to be occupied. COMMISSIONER HILLER: Exactly. COMMISSIONER FIALA: So that was a stimulus, actually. COMMISSIONER HILLER: Exactly right. And that's absolutely correct. Commissioner Fiala is correct in her description of the program. It was a stimulus program and it has to be paid for. There still is an impact. So I just was wondering if it was contemplated. CHAIRMAN COYLE: It's not contemplated, Commissioner Hiller, because the last time we discussed, that it was clearly Page 24 September 8, 2011 demonstrated that your interpretation is totally incorrect. COMMISSIONER HILLER: I disagree. CHAIRMAN COYLE: And that's okay, you can disagree. The County Attorney disagrees with you, as does our outside attorney. And on its face, it is even ridiculous to assert that. But nevertheless, it is not contemplated that there's any reimbursement necessary at all. Is that not correct, Mr. Klatzkow? MR. KLATZKOW: When we did the program, there was no contemplation of a reimbursement. CHAIRMAN COYLE: Okay, thank you. Commissioner Coletta, you're next. COMMISSIONER COLETTA: Yes, thank you. I'd like to go back to that money that we're getting from the casino, that special fund. It's about 300,000, a little bit more? MR. OCHS: 330,000, sir, for fiscal year'12. COMMISSIONER COLETTA: I want to remind this commission that this was part of our legislative effort back a couple years ago. In fact, Jim Mudd was one that told me how important it was. At that point in time somebody had placed a decimal in the wrong place and I thought I was going for $3 million. And I beat up everybody and his brother, I got the Chamber of Commerce in Immokalee to write letters, got all our legislators on board, and we come to find out it's $300,000. It was hopefully going to be used to build the infrastructure far as the roads go leading to Immokalee. Problem is $300,000 would not cover the cost of striping the roads, much less building new highways. So, I mean, if we're going to put this money to good use, and I mean it is new funds, it is recurring. I hope when that time does come that we look at it for economic development. Because if there's ever a community that needs economic development to take place, it's Immokalee, with the high amount of unemployment that's there at this Page 25 September 8, 2011 point in time. I just wanted to share that with you. I know it's past that point, but I didn't want it to disappear until I could say something. CHAIRMAN COYLE: Commissioner Fiala? COMMISSIONER FIALA: Yes. And mine is past the point also but I'm going to go back. It was my suggestion originally to try and encourage businesses, especially with our economy as bad as it was and our unemployment rate down so much. So was my suggestion, that we didn't have any impact fees on buildings that had already paid an impact fee, no matter what the change of business was, whether it went from a dentist office to a restaurant or whatnot. But we were hoping to take some of those places that could be not only deteriorating but also could be areas for crime and so forth where homeless could reside because they were sitting there empty and derelict. And everyone agreed with me. We voted it in for two years just to see how it would work. We felt it was a good program. We actually did have a few businesses taking advantage of that, and we were delighted to see that happen. But I had always felt that there would be no payback. Actually, the impact fees had been paid on the building. I realize the change of use could suggest another impact fee would be in place, but I felt that most of it was paid anyway as double taxation, we don't want to do that. And we do want to encourage new businesses to pay taxes, which helps all of us taxpayers. Because if new businesses start, they're paying taxes instead of a building sitting there empty. And we also wanted to encourage employment. And so that was the purpose of it. I don't think we'd ever suggested or thought about impact fees being repaid for this -- COMMISSIONER HILLER: No, that's not the issue. Page 26 September 8, 2011 COMMISSIONER FIALA: Oh, okay. CHAIRMAN COYLE: The -- before we forget it, Commissioner Coletta mentioned an issue about infrastructure in his district related to the Indian lands and transportation and roads. There is another category of federal funding that is available called the Indian roads program. Let's make sure we don't forget to pursue that source of funding to the greatest extent possible. Because it is clear that the casino and their expansion plans will place a burden on the roads that we have to build and maintain. And fortunately there is a federal program that recognizes that fact. And we are to make sure that we get in line to get some of that grant funding to develop and maintain the roads. MR. OCHS: Yes, sir. CHAIRMAN COYLE: Commissioner Hiller? COMMISSIONER HILLER: Yeah, I have some questions about the total employment. What's the total dollar -- total salary this year for this upcoming budget? MR. OCHS: Commissioner, I. don't have that off the top of my head. I'm going to have to dig through some pages here. If you give me some time. COMMISSIONER HILLER: We can come back to it. MR. OCHS: Thank you. COMMISSIONER HILLER: And then what I'd like to know is how that salary figure has changed on a percentage basis, as well as in total dollars from last year. The other question I have with respect to the salaries is why are you recommending that we buy back vacation time? MR. OCHS: Commissioner, that's a program that we've had in place for many, many years that was suspended over the last three years as the budgets were reduced. I felt that we had an opportunity with still meeting your budget guidance to provide a bit of an incentive to our employees to allow them to buy back time that we Page 27 September 8, 2011 owe them and that we would otherwise have to pay at a later date when they left and perhaps at a higher rate of pay at that point. So I thought it was a win/win both for the Board and for the employees, because you would be relieving a financial liability that you have to pay either sooner or later, and the employees could buy back some of that vacation now to help offset the increase -- excuse me, the reduction in their paychecks as a result of the July 1 decision for employees now to have to begin to pay three percent of their paycheck every paycheck into the Florida retirement system. COMMISSIONER HILLER: How long are they allowed to accrue their vacation? For what period of time can they accrue vacation? MR. OCHS: They accrue vacation every year based on years of service. COMMISSIONER HILLER: Can they continue to accrue it, you know, for as long as -- MR. OCHS: No, there's a cap of 440 hours, at which point they can no longer accrue. COMMISSIONER HILLER: So that's the maximum liability in the case of each? MR. OCHS: Yes, Commissioner, yes. COMMISSIONER HILLER: And once you start paying it out, do they get to start accruing it again up to that cap, or is it -- MR. OCHS: Yes. COMMISSIONER HILLER: -- a fixed amount of 440? MR. OCHS: No, they accrue it on a prorated hourly basis every month as part of your longstanding human resources policy. COMMISSIONER HILLER: Thank you. MR. OCHS: Commissioners -- Commissioner Hiller, if we might move to public comment and I'll get that information? COMMISSIONER HILLER: Thank you. MR. OCHS: Thank you. September 8, 2011 It's the next item on your agenda, Mr. Chairman. CHAIRMAN COYLE: Okay. Ian, can you call the first public speaker? Item # 1 C PUBLIC COMMENTS AND QUESTIONS MR. MITCHELL: Yeah, the first speaker will be Kathleen Reynolds. MS. REYNOLDS: Good evening. Maybe a little bit lighter note, I hope. CHAIRMAN COYLE: If it's going to be money, it's not lighter. MS. REYNOLDS: Because we're talking about Collier County babies, the most important citizens and our most vulnerable citizens. I think you guys know me. I've been here before; I've met with each of you. I am here to ask that you include in your FY12 budget the Collier County match for subsidized child care for the working poor. This is a category in which I have to collect that six percent match. For every dollar we get, we get $17 in return. The match designated by the state for Collier County FOR this year is $146,000. In return, the county will get $2.5 million to fund child care for the working poor. People like school bus drivers and supermarket clerks. People who simply do not make enough money to pay for child care at current rates, but who are vital to the well -being and life of this community. I'm asking that the county fund only $50,000 out of the required match, because we have an agreement with NCEF, the Naples Children and Education Foundation, that they will also fund $50,000, and the remainder will come from other sources, some of it also from the wine festival and some from the Collier County School Board in Page 29 September 8, 2011 in -kind donations. I have a handout that I've passed out. I don't know if they have it yet. MR. OCHS: Yes, ma'am. MS. REYNOLDS: So what I've done is I've given you the data from last year which I had previously gone over with you from the FY 10 year, and this is the FY 12. In FY 12, the early -- FYI 1, I'm sorry -- Early Learning Coalition put into Collier County $11.6 million. That's our total program, including subsidized child care, parent fees and the money that we invest in VPK, which is the voter - approved mandated program for four - year -olds in this state. You will see that during last year there were over 1,000 people directly employed in early learning that were funded, their businesses funded by the Early Learning Coalition. I have four of those directors of those early learning centers sitting right here. Because we talk a lot about funding small businesses. We keep lots and lots of small businesses in place to the tune of investing over $960,000 a month in this county in those small businesses through the Subsidized Child Care program and the VPK program. Additionally, over 1,700 people were able to go to work because the Early Learning Coalition paid for their child care. I think the data speaks for itself. And last year when I met with you guys, two of you said to me, this is a no- brainer. And I agree, this is a no- brainer. You may or may not know that the data that supports the connections between high quality early learning and a communities economic development at this juncture is irrefutable. People can say they're not connected, but they are. Yes, sir? CHAIRMAN COYLE: Her red light is on. MS. REYNOLDS: Oh, sorry. CHAIRMAN COYLE: Has she spoken three minutes already? Page 30 September 8, 2011 MS. REYNOLDS: It says I have 36 seconds. CHAIRMAN COYLE: You do? Okay, go ahead and take 36 seconds. MS. REYNOLDS: That's okay. I will answer any questions you have. But I just assure you, even the Governor has now changed his mind about applying for the race to the top for early learning. Florida's entitled to $100 million. Initially we said no. But the powers that be, the Florida chamber, the leading businessmen in this state have said there is such a connection between economic development and quality early learning, it is incontrovertible. I ask for your support. And I also ask that you allow me to work with the County Manager in the future so that this can be part of the regular budget that's presented to you. CHAIRMAN COYLE: Who was first, Commissioner Coletta or Commissioner Henning? COMMISSIONER COLETTA: I'm not too sure. COMMISSIONER HENNING: It doesn't matter. COMMISSIONER COYLE: Okay. I go from right to left. Commissioner Coletta? COMMISSIONER COLETTA: You've been coming before us for a number of years. MS. REYNOLDS: This is year three. COMMISSIONER COLETTA: Right, it is. And I'll tell you what, every year you come forward I tell you I like what you're doing, but we've never been able to quite find that money. And so you're looking for $50,000 this year to be able to produce the results of -- what's it one more time? How much is this going to -- MS. REYNOLDS: 2.5 million. COMMISSIONER COLETTA: And it's going to employ how many people? MS. REYNOLDS: Last year we employed -- and I'd be happy to Page 31 September 8, 2011 share the date with you -- 1,024 people directly employed in child care in the county, in Collier County. 1,760 people were able to go to work. And because they're able to go to work, they don't go on unemployment, they don't get food stamps, don't get housing assistance. The state has ascertained, they say $13,000 per family. We use a conservative number, $10,000. About 11 million bucks we're saving in subsidies for poor families. COMMISSIONER COLETTA: Okay. But you're looking for 50,000 to make this happen. MS. REYNOLDS: I'm looking for 50,000, and I think this is the best deal you're going to get all night. COMMISSIONER COLETTA: Well, I'll tell you what, you convinced me. I'm totally on board with what you're talking about. I don't like people coming at the 11 th hour like you did this year. I would appreciate, you know, seeing something a little bit sooner. But once again too, this is in the same category as our public transportation system. It's not something that's going to make us money that's going to pay for what it's actually for, but the payback is tremendous in the fact that we keep people employed, we get them to the job site to where they need to be. But we need to have the jobs there. And the end results of the jobs is that our children get a jump start on their education. I can't think of a better cause for us to reach out. So I would propose that we do this under economic development. And part of that $330,000 that I worked so darn hard to get, I wouldn't mind seeing $50,000 of that dedicated to this cause. COMMISSIONER FIALA: Second the motion. CHAIRMAN COYLE: Okay. Commissioner Henning? COMMISSIONER HENNING: Yeah, I probably will support the motion. We're doing VPK, the county is, in our Parks and Rec. Is there Page 32 September 8, 2011 any way to count that as a credit? MS. REYNOLDS: We pay you for the VPK that the county does. COMMISSIONER HENNING: You pay us? MS. REYNOLDS: We pay you, yeah. The state legislature sets the per people expenditure for VPK. We pay you. COMMISSIONER HENNING: Now you have people on your waiting list. MS. REYNOLDS: I do. Unfortunately in Collier County, about 1,800 kids. COMMISSIONER HENNING: 1,800 kids. MS. REYNOLDS: Right. COMMISSIONER HENNING: And their parents work. So where do those kids go now? MS. REYNOLDS: I shared with Commissioner Coyle today, and I will share with each of you when I visit with you, we have taken care of last year about 4,100 kids in Collier County. I do not believe that in my lifetime we will ever have enough funding to take care of all the kids who need our help. And please understand, those kids on the wait list have already been financially cleared. Their families are eligible. They're either working or in school, mom and dad. What we can do, what I can promise you and what I'd like to come back and talk about in the future is the really great job that we take care of the 4,100 kids that we are able to financially take care of this year. COMMISSIONER HENNING: Yeah, my question is just on those 1,800 children on the waiting list. Who is taking care of those children while their parents are working? Any idea? MS. REYNOLDS: I mean, I have learned late in life, no child care, no work. Parents cannot go to work. Page 33 September 8, 2011 COMMISSIONER HENNING: They're not being taken care of in the private sector, are they? MS. REYNOLDS: Well, a lot of these, for example, we have Franny Kain here from Fun Time, a lot of our child care facilities do fundraising on their own and they offer scholarships. But in terms of the state and federal dollars that come to us, we're maxed out in terms of the numbers of children we can take care of. I mean, truthfully, if you guys want to put some more on the table, we'll take care of them. I want to be clear about that. COMMISSIONER HENNING: Okay. CHAIRMAN COYLE: I think perhaps an answer that gets close to Commissioner Henning's question is that those people on the waiting list, many of them are probably not working because they have to care for their children, and at least one member of the family is probably at home. COMMISSIONER HENNING: I appreciate your concern on my question. I just don't want to take away from the private sector offering either pre -K or some kind of child care, that's all. MS. REYNOLDS: No, I want to be clear, the funding -- we're a pass - through agency. We have a lot of kids in -- public schools run VPK and school readiness programs, but this goes to the private providers. We pay them to take -- are funding in Collier County 154 private providers, small businesses. We fund small businesses with this money. COMMISSIONER HENNING: Okay, sounds great. MS. REYNOLDS: You know, truthfully, I would be more than happy to work and think about what can we do for those kids who are on a wait list. CHAIRMAN COYLE: You haven't addressed the advantage of the learning which occurs in this setting for these young children. And that is the big payoff, as you have stated many times in the past. MS. REYNOLDS: Right. Page 34 September 8, 2011 CHAIRMAN COYLE: But we won't go into all that. But we have a motion on the table by Commissioner Coletta, seconded by Commissioner Fiala. COMMISSIONER COLETTA: One comment? CHAIRMAN COYLE: Yeah. But let me restate the motion so that we -- unless you want to modify the motion. COMMISSIONER COLETTA: No, I don't. CHAIRMAN COYLE: Let me restate the motion so it's clear what we're voting on. The motion will approve $50,000, and it will come out of the $300,000 that we expect to get from the gaming industry in Collier County. And Commissioner -- there is a discussion, so Commissioner Coletta, go ahead. COMMISSIONER COLETTA: Yes. What we dealt with this year -- I mean, we haven't taken the vote yet but I think it's going to come out favorably. So the question is what are we going to do next year? And before you speak -- CHAIRMAN COYLE: That was the second point that she raised, that she would like to be part of the budgeting process for a longer term. COMMISSIONER COLETTA: Well, I would like to be able to work with you and your organization to see if we can find another partner, and that's the School Board. To see if we can bring them in, share the wealth so that we can try to meet this need across a larger spectrum than we're doing right now. And so if you would, please, and if this Board doesn't object to it, I'd like to on my own be able to work with this group to see what we can do to bring in a -- to grow it a little bit more. MS. REYNOLDS: We'd be happy to do that. CHAIRMAN COYLE: Commissioner Fiala? COMMISSIONER FIALA: Could I make a suggestion? While Page 35 September 8, 2011 you're working with the group, you might also work with the County Manager to see if one doesn't work if the other one will. She had suggested just to be a part of the regular budget process and work with the County Manager. So if the School Board doesn't work with you, this -- we can't let this go. I mean -- COMMISSIONER COLETTA: I don't have any intention to. But I do want to see if I can bring -- the more people into this the more government agencies that get involved, the better off we all are. COMMISSIONER FIALA: Sure. If they're going to share in the wealth. CHAIRMAN COYLE: Right now we're taking a vote on the $50,000. COMMISSIONER COLETTA: That's correct. CHAIRMAN COYLE: All in favor, please signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. CHAIRMAN COYLE: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER COLETTA: Aye. CHAIRMAN COYLE: Any opposed, by like sign. (No response.) CHAIRMAN COYLE: Okay, now, could I just get a sense of the commissioners about the issue that has been raised about participating in the budgeting process for a longer term commitment of future funding. I see nothing wrong with you working with the County Manager and his staff during the budget preparation process and so that we can perhaps put together a longer range program. COMMISSIONER HENNING: I think we have through the CDBG monies. MS. REYNOLDS: Unfortunately we were not funded through Page 36 September 8, 2011 CDBG this year. COMMISSIONER HENNING: Right, but -- MS. REYNOLDS: But we will apply again. COMMISSIONER HENNING: Future years -- oh, yeah, that's right, that has to go through a process. MS. REYNOLDS: I simply ask for your blessing in terms of working with your County Commissioner so that we can -- CHAIRMAN COYLE: County Manager. MS. REYNOLDS: County Manager. -- hold on to this opportunity for Collier's children from the -- CHAIRMAN COYLE: And he is the guy in charge. COMMISSIONER HENNING: Yeah, I'm in favor of that. CHAIRMAN COYLE: Okay, we have three nods at least? COMMISSIONER COLETTA: Sure. COMMISSIONER FIALA: Yes. CHAIRMAN COYLE: All right. Then we did it. MS. REYNOLDS: We did it. And on behalf of Collier's children, particularly those children in need, I thank you sincerely. Thank you so much. CHAIRMAN COYLE: Thank this guy, it came out of his budget. MS. REYNOLDS: Thank you. I'll be in touch. MR. OCHS: Yes, I'm sure you will. Thank you, Kathleen. MR. MITCHELL: Sir, your next speaker is Kathy Parker. And this is the last registered speaker. MS. PARKER: Good evening, everybody. I thank you for listening to me tonight. My main concern is the Radio Road beautification. I think it's an over - abundance of plant growth, trees, shrubs, everything. I do not know why we need all -- to spend all this money. Taxpayers are on -- some people are on a fixed income. I know I am. I just cannot see wastefully spending all of our money for plants that are planted two, Page 37 September 8, 2011 three inches apart, trees planted too close to each other, the upkeep, the water, all the maintenance. I would love to see everybody cut expenses, especially during, again, our economic times. Everyone seems to be greedy. No one wants to cut out or cut down expenses. All they want to do is raise prices, raise prices. I can't keep up in my taxes. My market value of my home has gone down $18,000. The property tax is going to go up. I don't understand this concept at all. I really don't. COMMISSIONER FIALA: Commissioner? CHAIRMAN COYLE: Yeah, go ahead, Commissioner Fiala. COMMISSIONER FIALA: Do you live in that Radio -- MS. PARKER: I live on Radio Road in Briarwood. COMMISSIONER FIALA: Okay. You're paying for that. MS. PARKER: I know. And I don't like it. COMMISSIONER FIALA: But you're voting for it. MS. PARKER: I'm not voting for it, believe me. COMMISSIONER FIALA: Well -- MS. PARKER: No, I'm not. COMMISSIONER FIALA: -- see, you have to take it up with your board. This is not something that's a county project. It's a municipal special taxing unit just for your community. They decided that they wanted landscaping. They then decided that they wanted to expand the landscaping farther on down Radio Road. We never made any of those decisions, they did. And they said we want landscaping, we want to look beautiful in this area and we'll pay for it. We said fine, but we're not even going to pay the maintenance. They said fine, we'll do that. So the taxpayers of Collier County do not pay for that, it's the people that live on that road. Now, if you're unhappy with that, and I understand that you are -- MS. PARKER: Oh, yes. Page 38 September 8, 2011 COMMISSIONER FIALA: -- I can hear that, you need to go to the Radio Road MSTU meetings and voice your concern. They're the ones that are making the decisions. They also decide what the design plan is, they decide if they want to put any special lighting in there. It's their MSTU. I'm very familiar with this because they do the same thing on Bayshore, and they're going to expand that right now. But of course the people on Bayshore are thrilled with it because it has given them a better appearance, and they certainly needed it. And so in fact they're in the process of expanding it farther on down Bayshore as we speak. So anyway, it's nice that you voice your opinion, but there's nothing we can do up here. We can't tell them how to make a decision with their dollars, you need to go to their meetings. MS. PARKER: Okay, and where would this be again? COMMISSIONER FIALA: I don't even know. There's the lady that knows. MS. PARKER: Okay. Very good. Well, thank you for listening to me. CHAIRMAN COYLE: There's one other issue you raised and you need to get an answer to that also. Why is your property value going down and your taxes going up. That is an unintended consequence to the Homestead tax plan, the one that caps your taxes every year when it goes up. That's a wonderful benefit for people who are homesteaded in Florida. But unfortunately the way the state law is written, you get no benefit if the value of your home goes down. MS. PARKER: Correct. CHAIRMAN COYLE: You continue to get increases based upon the cost of living adjustments. It's called recapture. And that's a provision that was not intended at the time that the law was passed in Tallahassee. So once again, there's nothing we can do about that. I think we Page 39 September 8, 2011 all think it's a little unfair, but it does provide a wonderful benefit when the values of homes go up. And so we've enjoyed that benefit for many, many years, and now our home values are going down and our taxes are still going up. It's a little disconcerting but that's just the way the law is written. MS. PARKER: So who decides for the property value to go up, the appraiser? CHAIRMAN COYLE: Yeah, the Property Appraiser does that, based upon their evaluation of the property values each year. And Abe Skinner could answer your questions more specifically about that. But he just takes the data that indicates the market values of the homes, of the properties, and he just reports that information. So in difficult economic times that's what happens, property values go down. COMMISSIONER COLETTA: May I? MR. MITCHELL: Sir, Mr. Chairman, just a comment on that. Radio Road's got vacancies on their board, so, you know, that's a direct way of -- if you wanted to contribute. They do have vacancies which are advertised in the press on their board. CHAIRMAN COYLE: So you can apply for a vacancy on that board, if you wish. Okay? MS. PARKER: I might do that, thank you. CHAIRMAN COYLE: Commissioner Coletta wants to -- COMMISSIONER COLETTA: Just one final point I wanted to share with you, just so you know how it's structured. While your taxes have gone up, our revenue stream that's coming in is also decreased. And the people that have been the benefactors to that were the people that did not have homestead exemption. And when their property values fell, their property taxes also fell. Businesses benefited from it tremendously. The value of their business property fell quite a bit. However, I'm also homesteaded. Until my value reaches the September 8, 2011 actual value of the house, I'll continue to be paying more taxes, even when we're cutting it three percent -- that's what they have set on, three percent. It's just one of those unfortunate circumstances. We benefited for years. I know my taxes are still considerably lower than my neighbors who does not have homesteaded. Of course I purchased my property and built my house back in '85. MS. PARKER: Yeah. I've been here 15 years, so -- CHAIRMAN COYLE: Thank you very much. Good luck with the board. Okay, we have anymore speakers? MR. MITCHELL: Sir, no, that was your last speaker. MR. OCHS: Mr. Chairman, I have that information that Commissioner Hiller requested. CHAIRMAN COYLE: Go ahead. COMMISSIONER HILLER: Great, thank you. MR. OCHS: Commissioners, budgeted regular salaries for the Board of County Commissioners agency in fiscal year ' 11 totaled $805995,213. The budget for regular salaries for fiscal year ' 12 is $80,373,656. That's a reduction of $621,557 over the fiscal 'I I budget for regular salaries. That represents on a percentage basis a .76 percent reduction. And Commissioners, I will add that the figure proposed for fiscal '12 includes the cost of the vacations sellback proposal, as well as the employee insurance premium offset. So even with those -- CHAIRMAN COYLE: And would you like to tell us -- would you like to confirm that over the past three years or so we have trimmed over 440 positions out of Collier County government and reduced overall expenses by $450 million? MR. OCHS: Yes, I will confirm that, Commissioner. I think the board's done a fantastic job in that regard. CHAIRMAN COYLE: And the staff. You and the staff. Page 41 September 8, 2011 MR. OCHS: I give the staff credit as well. Thank you, sir. CHAIRMAN COYLE: Commissioner Fiala? COMMISSIONER FIALA: Yes, haven't we also discouraged as much as we could overtime? MR. OCHS: Yes, ma'am, we're always watching that very carefully. COMMISSIONER FIALA: Right, we're trying to trim everything we can off that budget. CHAIRMAN COYLE: And the staff has not had a salary increase in over three years. MR. OCHS: That's correct. CHAIRMAN COYLE: You're not -- okay. All right. Very well. So there have been substantial efforts at trimming cost at the government level. If only that would occur at the federal government level, we would all be in a lot better position. MR. OCHS: Commissioners, if we could continue. CHAIRMAN COYLE: Go ahead. Item #11) ANNOUNCEMENT OF TENTATIVE MILLAGE RATES AND PERCENTAGE CHANGES IN PROPERTY TAX RATES MR. ISACKSON: Commissioners, Item 1.D on your agenda is announcement of tentative millage rates and the percentage change in property tax rates. Commissioners, if you'll refer to tab 1 -E where you will find the resolution providing for the tentative fiscal year 2012 millage rates. Florida TRIM statutes require that the rolled -back millage rates, tentative millage rates and percentage changes from the rolled -back rate be read into the record at this time prior to adoption of the tentative millage rates under agenda item 1 -E. Page 42 September 8, 2011 And if you'll bear with me, Commissioners, this is the favorite part of the agenda for me, I know. I actually have to read all these into the record at this time. CHAIRMAN COYLE: And I'd advise those of you in the public, if you'd like to take a quick nap, this is the time to do it. Because none of this makes any sense. It makes no sense to me. But we have to read this information to you. Bottom line is, the percentage change for the overall budget from the rolled -back rate, which is meaningless, is four percent, 4.1 percent reduction in the budget from the prior year. But nevertheless, go ahead, Mark, and -- MR. ISACKSON: Thank you, Mr. Chairman. CHAIRMAN COYLE: -- put us to sleep. MR. ISACKSON: The general fund, Fund 001, the rolled back millage rate is 3.7755. Proposed millage rate, 3.5645. That is a percentage change from the rolled back rate of -5.59 percent. Water pollution control, Fund 114, the rolled back millage rate, .0311. The proposed millage rate, .0293. Percent change from the rolled back rate, 5.79 percent. The unincorporated area general fund, Fund 111. The rolled back millage rate, .7618. The posed millage rate, .7161. It's a six percent decrease from the rolled back rate. The Golden Gate Community Center, Fund 130. The rolled back millage rate, .2221. The proposed millage rate, .1990. That is a 10.4 percent reduction from the rolled back rate. Victoria Park Drainage, Fund 134. The rolled back millage rate, .0492. Proposed millage rate, .0492. A zero percent change from the rolled back rate. Naples Park Drainage, Fund 139. The rolled back millage rate, .0096. The proposed millage rate, .0090. A 6.25 percent decrease from the rolled back rate. The Vanderbilt Beach MSTU, Fund 143. The rolled back rate, Page 43 September 8, 2011 .5245. The proposed millage rate, .5000. A reduction of 4.67 percent from the rolled back rate. The Isle of Capri Fire Protection District, Fund 144. The rolled back millage rate, 2.1602. The proposed millage rate, 2. The percentage change from the rolled back rate, -7.42 percent. The Ochopee Fire Control District, Fund 146. The rolled back millage rate, 4.2517. The proposed millage rate, 4. The percent change from the rolled back rate, a -5.92 percent. Collier County Fire District, Fund 148. The rolled back millage rate, 2.2064. The proposed millage rate, 2. Percent change from the rolled back rate, 9.35 percent. The Goodland Fire MSTU, Fund 149. The rolled back millage rate, 1.3093. The proposed millage rate, 1.2760. Percent change from the rolled back rate, -2.54 percent. The Sable Palm Road MSTU, Fund 151. The rolled back millage rate, .1320. The proposed millage rate, .1. Percent changed from the rolled back rate, -24.24 percent. The Golden Gate Parkway Beautification MSTU, Fund 153. The rolled back millage rate, .5647. The proposed millage rate, .5. Percent change from the rolled back rate, -11.46 percent. The Lely Golf Estates Beautification MSTU, Fund 152. The rolled back millage rate, 2.1870. The proposed millage rate, 2. Percent change from the rolled back rate, -8.55 percent. The Hawksridge Stormwater Pumping MSTU, Fund 154. The rolled -back millage rate, .0518. The proposed millage rate, .0500. Percent change from the rolled back rate, -3.47 percent. The Radio Road Beautification MSTU, Fund 158. The rolled back millage rate, .3114. The proposed millage rate, .3114. Percent change from the rolled back rate is zero. The Forest Lakes Roadway and Drainage MSTU, Operating Fund 159. The rolled back millage rate, .2859. The proposed millage rate, 1.1395. Percent change from the rolled back rate, plus 298.57 Page 44 September 8, 2011 percent. The Immokalee Beautification MSTU, Fund 162. The rolled back millage rate, .9940. The proposed millage rate, .9354. Percent change from the rolled back rate, -5.90 percent. The Bayshore Avalon Beautification MSTU, Fund 163. The rolled back millage rate, 2.3754. The proposed millage rate, 2.3754. Percent change from the rolled back rate is zero. The Haldeman Creek Dredging MSTU, Fund 164. The rolled back millage rate, .7054. The proposed millage rate, .7054. Percent change from the rolled back rate is zero. The Rock Road MSTU, Fund 165. The rolled back millage rate, 3.6853. Proposed millage rate, 3. Percent change from the rolled back rate, minus 18.60 percent. The Radio Road East MSTU, Fund 166. Rolled back millage rate, .4666. Proposed millage rate, .4666. That is a zero percent change from the rolled back rate. Conservation Collier, Operating Fund 172. The rolled back millage rate, .1070. The proposed millage rate, .1688. Percent change from the rolled back rate is 57.76 percent. Forest Lakes Debt Service, Fund 259. The rolled back millage rate, 4.1025. Proposed millage rate, 2.8605. Percent change from the rolled back rate, -30.27 percent. Conservation Collier Debt Service, Series 2005 Bond Issue, Fund 272. The rolled back millage rate, .0905. The proposed millage rate, .0812. Percentage change from the rolled back rate, -10.28 percent. Conservation Collier Debt Service Series, 2008, Fund 273. The rolled back millage rate, .0678. Proposed millage rate is zero. 100 percent change from the rolled back rate. Collier County Lighting District, Fund 760. The rolled back millage rate, .1477. The proposed millage rate, .1477. That is a zero percent change from the rolled back rate. And the Pelican Bay MSTU /BU, Fund 778. The rolled back Page 45 September 8, 2011 millage rate, .0538. The proposed millage rate, .0857. Percent change in the rolled back rate is 59.29 percent. And the aggregate millage rate overall, the rolled back rate is 4.5149. The proposed millage rate is 4.3299. The percent change from the rolled back rate is -4.10 percent. Item # 1 E RESOLUTION 2011 -138: RESOLUTION ADOPTING THE TENTATIVE MILLAGE RATES — ADOPTED COMMISSIONER HENNING: Move to approve the resolution to adopt a tentative millage rate for FY 2011 -2012. COMMISSIONER FIALA: Second. CHAIRMAN COYLE: Okay, motion to approve the resolution for the millage rate for 2012 by Commissioner Henning, second by Commissioner Fiala. Is there any further discussion? (No response.) CHAIRMAN COYLE: All in favor, please signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. CHAIRMAN COYLE: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER COLETTA: Aye. CHAIRMAN COYLE: Any opposed, by like sign. (No response.) CHAIRMAN COYLE: The motion passes unanimously. Item #117 Page 46 September 8, 2011 RESOLUTION 2011 -139: RESOLUTION ADOPTING THE AMENDED TENTATIVE BUDGET — ADOPTED 4/1 COMMISSIONER HENNING: Mr. Chairman, I make a motion to approve the adopted tentative budget for fiscal year 2011 -2012. COMMISSIONER FIALA: Second. CHAIRMAN COYLE: Motion by Commissioner Henning to approve the adopted tentative budget for 2011 -2012. Seconded by Commissioner Fiala. Any further discussion? (No response.) CHAIRMAN COYLE: All in favor, please signify by saying aye. COMMISSIONER FIALA: Aye. CHAIRMAN HENNING: Aye. CHAIRMAN COYLE: Aye. COMMISSIONER COLETTA: Aye. CHAIRMAN COYLE: Any opposed, by like sign. (No response.) COMMISSIONER HILLER: Aye. CHAIRMAN COYLE: Okay, it passes 4 -1, with Commissioner Hiller dissenting. Item #1G ANNOUNCEMENT OF FINAL PUBLIC HEARING MR. ISACKSON: Commissioners, item 1 -G on your agenda is announcement of the final public budget hearing. The final public budget hearing on the fiscal year 2011 -2012 Collier County budget is Thursday, September 22nd, 2011 at 5:05 p.m., the Collier County Government Center, W. Harmon Turner Building F. Third floor, Page 47 September 8, 2011 board room, Naples, Florida. CHAIRMAN COYLE: Okay. Anything else we need to do? MR. OCHS: That's all we have on the agenda this evening, sir. Item #2 ADJOURN COMMISSIONER HENNING: Do you need a motion to adjourn? CHAIRMAN COYLE: I'll be happy to adjourn, if you don't object. You're going to make a motion to adjourn? COMMISSIONER COLETTA: Sure, let's do it. CHAIRMAN COYLE: Okay. Commissioner Coletta makes a motion to adjourn. Is there a second? COMMISSIONER FIALA: Second. CHAIRMAN COYLE: Second by Commissioner Fiala. Any discussion? COMMISSIONER HENNING: Yeah, I don't know if we need a motion to adjourn. CHAIRMAN COYLE: I don't think we do either, but we will do it. aye. MR. KLATZKOW: As a matter of practice. CHAIRMAN COYLE: All in favor, please signify by saying COMMISSIONER FIALA: Aye. CHAIRMAN COYLE: Aye. COMMISSIONER HILLER: Aye. COMMISSIONER COLETTA: Aye. CHAIRMAN COYLE: Any opposed, by like sign. (No response.) September 8, 2011 COMMISSIONER HENNING: Aye. CHAIRMAN COYLE: Okay, it passes 4-1 with Commissioner Henning dissenting. He'll be remaining after for an indefinite period of time. So any of you who have questions or comments, please come up and talk with Commissioner Henning. It's going to be a long night for him. MR. OCHS: Thank you, Commissioners. ***** There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 6:38 p.m. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL Fred Coyle, Chairma ATTES ':*i,• ;,,,,,. DWI G � � •• CK, CLERK y MI5 kN_„,!,, ,., (ij... ',�7 ,Y Yx�: VY.t 1P; `t ice, ../ Or r:i atcr+ y n 4,; .;v`' R These minutes app ved by the Board on Oct4s6-c I 1 2011 , as presented or as corrected . Transcript prepared on behalf of Gregory Court Reporting, Incorporated by Cherie' R. Nottingham, CSR. Page 49