2021-07-27 Handwritten MinutesCITY OF OKEECHOBEE, FLORIDA
.IULY 27, 2021, WORKSHOP
HANDWRITTEN MINUTES BY LANE GAMIOTEA
CALL TO ORDER
On Tuesday, July 27, 2021, a workshop of the City Council for the City of Okeechobee
was called to order at 5:00 P.M. by Mayor Watford and held in the Council
Chambers, located at 55 Southeast 3rd Avenue, Room 200, Okeechobee, Florida.
ATTENDANCE taken by City Clerk Gamiotea to establish a quorum:
PRESENT ABSENT
Mayor powling R. Watford, Jr. _x_
Council Member Noel Chandler x
Council Member Clark x
Council Member Jarriel _x_(with consent)
Council Member Keefe x
Staff present were:
City Clerk Lane Gamiotea,
Assistant Police Chief Donald Hagan,
Public Works Director Allen,
General Services Coordinator Burnette
City Administrator Ritter,
Fire Chief Herb Smith,
Finance Director Riedel
Police Services Coordinator Kovak
I Commencement
II AGENDA
A. Budget Basics Workshop — review definitions of revenues, expenses, and
fund balance.
B. Discuss Fund distributions and expenditures.
III Public Comment
Powerpoint slideshow copies distributed, copy incorporated into the official minute file.
Ritter, first came on got with several people and thought it would be a good idea
before getting into the number to do a budget 101 or budget basics. India has worked
very hard on this presentation. We went over it last night, it helps me a lot coming on
new here, brought some light to questions I had while on the council. I think you're
going to get a lot out of this presentation.
Review definitions. Revenus what are they. Expenses. Fund balance.
Discuss fudn distributions and expenditures: fund distributions. Expenditures. Transfer
in's — where from and why.
City Funds: General fund — operating. PF fund. Capital vehickes/projects fund. Grant
funds. LES fund.
Revenues: taxes. Fees. Fines. Sale of assets. Charges for services. Grants.
General fund Revenues: ad valorem. Other fees. Intergovernmental. Charges for
services. Fine, forefeitures and penalties. Uses of money other revenues.
Other fees: utility taxes, 10% rec'd directly from tility electric, natural gas, propane.
BTR by ordinance.
Public Service Fee by Ordinance. MC what is this. Vacant property, build on it,
property approaiser does tax formulate taxes. It wasn't CO'd on Jan 1. When the
dwelling is CO'd we compute what th ead vaolorem tax would be for the rest of the
year, assessed an advorelm tax and garbage tax. Residential and Commercial. Wawa
paid their public service tax, nothing to the amount that the ad valorem is. Rate is from
a spreadsheet at finance and based on a pro rate day. Type and size in the formula.
Its pro-rated per day. Ritter not assessed ad valorem until Jan 1, 2022 with the new
building, previous was based on vacant property.
Fire Insurance Premium Tax 175.131 F.S. can only be used for pension fund to off set
the amount the city is required to pay into the fund. Casualty Insurance Premium Tax
18.11 FS.
Intergovenment Fees part 1: municipal revenue sharing 1.3653% of newt sales and
use tax collections. Factors: population of city and county; other cities; % restricted for
transportation related expenses (required by FS).
Mobile home lices — tax collector, can be paid on a 2-year cycle reason for fluctuation.
L. Gamiotea Handwritten Minutes, 7-27-2021 workshop, Page 1 of 4
Alcohol licenses. 38% city and county.
Half cent sale tax. FS 212 percentage of net tax proceeds for portion countrywide is
13% for the current FY. Factors ra....
Part 2: one cent sales tax
Communication service tax...
Public safety SRO for OCSB only.
County business licesn tax.
NC — if county does a 1 cent tax for the new jail how would that effect this? IR they
may be able to do w/o us involved, funds go directly to them.
Charges for Services:
Building and inspection fees.
Exception and zoning fees.
Franchise fees: electric natural gas and solid waste through contracts. Giving them a
right to be exclusive to sale a product within our city.
Plan review fees.
Alley closing/map sales.
Public safety SRO provide entity (OCA). GR we get a percentage of that.
Solid waste franchise fees, commercial from waste management and assessment for
residential from tax collector. Split those out, 10% and the balance 90% revenues that
is a charge for services.
Fines Forfeitures and penalties. top 4 are from clerk of court, FS spells out how much
we get per $50. A small portion of these revenues as assigned specifically to use on
law enforcement education.
Ordinance violations, not code violations. Small things thye might write tickets for.
BK what are those code fines, ord violation examples? IR doesn't know.
[Res #2004-01 is an example]
Uses of Money and property: interest earnings.
Surplus city property (shifted to capital fund)
Other revenues: public safety grant. Special purpose grant.
DOT Highway maintenance contract. Mowing and traffic signals.
Code Enforcement Fines.
Police Accident Reports-requires $10 per report.
GR — need to start looking for a grants coordinator in the future to have a person
designed for that service. Jeanna — we don't charge someone who comes in and
requests a report.
Pie charge of the categories described. Ad valorem is highest, 39%, and per FS that's
what the purpose was originally for. All the other fees were adopted to make up the
difference from when ad valorem didn't cover the expenses.
Transfer in from PF fund, FS allows a portion of the funds to be used specifically out of
general fund for public works department. Separate spreadsheet listing the
expenditures, approved by the auditors.
Budget a transfer in from capital explanation. Budget revenues in slides are from the
current year. Later will refer to audited amounts.
MC — 39% from slide, 32% next slide. The transfer of the capital isn't there. Pink line
historically what we've transferred from capital (savings/reserves). The 7% came from
the capital fund.
Public Facility Fund Revenues (or account):
Local options gas tax — 5 cent per gallon motor fuel only FS 206.4(1)(e).
Local alternate fuel tax — 6 cent per gallon FS 206.4(1)(e).
SRS aka 8 cent fuel tax — 1 cent distribution based on per lane mile.
gtn cent fuel tax 1 cent per gallon by interlocal agmt 19.34%.
fuel tax rebate.
MC — local option county tax? City gets it, county enacted and then we get a portion by
interlocal agreement.
NC — franchise fee from the electric. Contract for them, we get some revenue from
them. IR cant remember the amount.
SCOP funding (grant) small county outreach program, new for cities, county has had it
for many years, write grant, submit to DOT. Interest earnings.
Graph showing these revenues.
Pie charge — law enforcement special fund revenues, from when the police impounds
vehicles, then we its extremely limited on what we can use these revenues on. Didn't
include transfers in on the chart.
L. Gamiotea Handwritten Minutes, 7-27-2021 workshop, Page 2 of 4
Expenses.
Operating. Capital Costs, last 5 yrs or longer that's significant value, enhancing
building if its going to extend the life of the building.
General Fund departments listed.
Operating expenses. All the department has operating expenses.
Public Facilits Fund has operating.
Captial Improvement and replacemtns all departents except transportation related
items. Try to capture anything to do with transportation to use those specific revenues
to free up the rest to use other places.
Personnel at the top.
Contractual services lists.
Other operating expenses list
Pie chart with 2020-21 numbers of expenditures.
Capital improvements and replacements. List of these expenditures.
GR — things are getting done in PW but very difficult to keep up with them based on
the current staff approved.
RECESS: 5:59 PM, RECONVENUED 6:04 PM.
g,. Fund Balance
Collective balance: excess revenues over expenses throughout time. Sale of Assets.
2012, GASB said everybody in USA classify things differently, made up 5 categories:
non-spendable. Restricted. Committed. Assigned. Unassigned.
Definitions: non-spendable is our fuel at public works, cant spend it but its there.
GR that piece of the fund balance will go down as we use that fuel. Non-spendable is
not in our budget since cant spend it. Sitting there to use. Chart the use of the gas
every week, how many gallons used, use that to also calculate what we spent on the
report to the State. MC — becomes an operational expense?
IR — report from everybody per quarter, gal of gas cost and charge to that department,
whatever the last expense is what we use for the entire report. State approved WEX
card program. Don't buy as much bulk fuel as we use to. Not a big price increase. Cost
savings in personnel time.
Restricted constrained by their providers: legislators, grants, bondholders.
Committed normally used for multi year projects that you want ot set aside. Can also
be noncommitted. GR — centennial park would be a good example. IR, past council set
aside funds for that specific project. New council can change that. Historically havn't
used this.j
Assigned — transfer in assigning certain amount of reserves to use until the end of the
year.
Unassigned or the fund balance. GR an example be like we need to for engineering
services for commerce center. IR yes and then do a budget amendment. Large
amount not spent closer to the end of the year to make adjustments.
Restricted funds — are to be used for a specific purpose based on limitations
(restricted). They should be used first based on their designation and as budgeted.
Public facility funds — gas tax reveeues. Special alw enforcement funds. Non-
spendable inventory.
Assigned Funds: grants — projects that will be reimbursed. Subsequent years
expenditures. Future capital — 5 year capital plan. Multiyear designated project.
Replenishment of depreciated assets. We do not replace capital items every year.
Unassigned fund. Residential classification for the general and capital vehicle/project
und. Budget stabilization use of reserves for operating expenses. 5 year capital
improvement plan. Multi year designated projects. Replenishment of depreciated
assets.
City fund balances assigned v. unassigned v restricted: which funds:
Unassigned: general fund, non budgeted capital vehicle
Assigned: budgeted capital. Susequst yrs expendirues.
Retricted: non spendable inventory, speicla law enforcement, public facilty.
City Funds: fund balance an dneeds slide.
Audited fund balance.
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�`** IR to post the spreadsheet to the website *'"*
DW — like that slide.
Pie chart again with the expenditures.
MC still have to maek the difference by capital.
IR — we have budgeted the amount. 10% stabilization, influx the transfer, and council
know exactly what were having to take out of the reserves. Its not substantial for a
long period of time.
DW — very well done.
MC — can we get a copy of these slides.
IR will send slide show.
MC — each slide full page.
GR — gave council member Jarriel his copy of this.
MC — spoke with him and concerned he's missing this workshop.
DW — any other comments or questions.
MC —
IR revenues are higher than state estimate and what was budgeted; no interest
earned. Expenses have skyrocked. Added costs this year that we didn't anticipate. Still
not going to spend the $1.7 million for sure. A lot of things are getting accomplished.
Things cost money. Legal representation for foreclosures, charter review.
Expendidentially more expensive than what we estimated in the budget. Change in
personnel. Significate budget amendment forth coming.
Public noen .
IV Adjournment
Mayor Watford adjourned the workshop at 6:34 P.M.
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