2021-07-27 Approved Minutes157
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�ITY OF OKEECHOBEE, FLORIDA
.1ULY 27, 2021, CITY COUNCIL WORKSHOP
SUMMARY OF DISCUSSION
I. CALL TO ORDER
Mayor Watford called the Workshop of the City Council for the City of Okeechobee to
order on Tuesday, July 27, 2021, at 5:00 P.M. in the City Council Chambers, located at
55 Southeast 3rd Avenue, Room 200, Okeechobee, Florida.
II. ATTENDANCE
Roll was taken by City Clerk Lane Gamiotea to establish a quorum. Members present:
Mayor powling R. Watford, Jr., Council Members Noel Chandler, Monica Clark, and
Bobby Keefe. Council Member Bob Jarriel was al�sent.
III. AGENDA
A. The City Council scheduled a workshop session for Finance Director India Riedel
to explain the h�asics of the City's budget. She accomplished this extremely
detailed presentation with the assistance of 39 PowerPoint slides. Beginning with
revenues she reviewed where the source of each comes from and any that have
restrictions as to where they can be expended. Specifically, revenues for General
Fund include ad valorem (property) taxes; Other fees encompass the utility taxes
for electric, natural gas, and propane, with the 10 percent paid to the City, the
maximum amount Florida Statutes (F.S.) allows municipalities to charge is
adopted by City ordinance; Business tax receipts is a tax adopted by ordinance
as allowed by F.S. and is paid by individuals operating a business within the City;
Public service fee is another tax that is charged by City ordinance and is a one-
time fee paid only when a structure is built on vacant property with a daily pro-
rated formulated fee that helps to off-set the cost of services the first year the
building is finaliz�d but has not yet had its ad valorem assessment reflect the new
structure; Fire insurance premium tax is implemented by F.S. 175.131. The City
receives this tax from the State and its use is restricted specifically to offset the
City's amount required to pay into the Firefighters' Pension Fund. The same
applies to the Casualty insurance premium tax implemented by F.S. 185.11, only
its restricted us� is to offset the City's required amount to pay into the Police
Officers' Pension Fund.
Next are intergovernmental fees, identified as municipal revenue sharing, which
is 1.3653 percert of net sales and use of tax collections based on population of
Okeechobee (City and County), all municipalities, with a percentage being
restricted for transportation related expenses. Mobile home licenses are collected
at the Tax Colle�ctor's Office. However, these can be purchased on a two-year
basis therefore some years the amounts will be higher than the next. Alcohol
beverage licenses is a tax of which 38 percent is paid to the City from the State.
The half-cent sales tax is provided by F.S. 212 and is a percentage of net sales
tax proceeds that fluctuates based on ratios of population for the City and County,
the current year was 13 percent. The one-cent sales tax is also provided by F.S.
212, collected by the County, and then provides the City with its portion. State
and local communication service tax is for telecommunications, satellite, and
mobile communications of which the City receives a small portion. Public Safety
is from the Okeechobee County School Board as their portion for the School
Resource Officers (SRO). The County busi�ess license tax fees are also included
in this Fund.
She then moved into the area of charges for services. These include the building
and inspection fiees collected when permits are issued by General Services.
Exception and zoning fees are collected in General Services based on
applications and petitions by individuals that need to have their property rezoned
or future land use changed, requests that the City amend the comprehensive plan
or land developrnent regulations, or obtain a special exception or variance (the
list is not inclusive). Franchise fees are paid to the City for electric, natural gas
and solid waste, and are collected by ordinance allowing these companies
exclusivity to operate within the City.
.JULY 27, 2021, CITY COUNCIL WORKSHOP MINUTES, PAGE 1 OF 3
158
III. AGENDA CONTINUECI
A. CONTINUED: Plan review fees are paid when individuals are scheduled before
the Technical RE�view Committee for site plan review. Alley closings/map sales.
Public safety �RO private entity is for Okeechobee Christian Academy.
Residential solid waste collection fees are split with 10 percent in the franchise
fee line item and the remaining 90 percent within this category. Fines, forfeitures,
and penalties revenues encompass court fines, radio communication fees, law
enforcement education, and investigation cost reimbursements of which a portion
is paid to the City from the Clerk of Court. The F.S. spells out the percentage of
fees for the City. A small portion of the revenues are restricted to be expended
only on law enforcement education. The ordinance violation revenues in this
section are not code enforcement violation but from infractions that the Police
Officers can enforce that the City Council has adopted by resolution. Uses of
money and pro��erty revenues are from interest earnings and when surplus
property is sold, which is shifted to the Capital Improvement Projects Fund
(CIPF). Other revenues include the public safety grant, special purpose grants,
and Florida Dep�rtment of Transportation (FDOT) highway maintenance that is
paid to the City via agreement for higl�way landscaping and traffic signal
maintenance. This agreement with FDOT does not cover the entire cost of
maintenance but assists in off-setting costs. Lastly are the code enforcement
fines and police accident reports. The changes in revenue trends were then
reviewed to show when revenues are at the correct percentage, less is required
to be transferred from the CIPF (where the reserves are held similar to a savings
account).
The Public Facilities Improvement Fund (PFIF) revenues were reviewed and
include the local option gas tax, which is five-cents per gallon on motor fuel with
local alternate fuel tax being six-cents per gallon, both allowed by F.S.
206.41(1)(e). The City's portion of the eight-cent fuel tax is one-cent per lane
mile. The City's portion of the ninth-cent fuel tax is one-cent per gallon (or 19.34
percent) as allowed by an Interlocal Agreement with the County. Fuel tax rebate,
Small Counties Uutreach Program (SCOP) grants, and interest earnings are also
included in this Fund.
Using the curren�t 2020-21 Fiscal Year (FY) revenues, the percentage breakdown
of revenues are as follows: 35 percent from ad valorem, 10 percent from other
fees, 21 percent from intergovernmental, 15 percent from charges for services, 2
percent from other revenues, 5 percent from local option gas tax, 3 percent from
the local alternative fuel tax, 1 percent from the eight-cent fuel tax, 1 percent from
the ninth-cent fuel tax, and 8 percent from SCOP funding.
Operating expenses within the General Fund for the eight departments include
personnel costs, contractual services (a list of the current years contracts was
provided), and other operating expenses. PFIF expenses cover mostly
transportation rE:lated items such as contractual maintenance, streetlights,
utilities, repair and maintenance of equipment, road and materials. CIPF
expenditures ar� for improvements and replacements of equipment, can be
project specific, and each of the eight departments has an expenditure line item
to submit annu7l request during the budget process. However, expenditures
cannot be transportation related items. There are other items that are considered
operating expenses that could be within any of the above three Funds and include
but are not lim�ted to expenditures related to citizen boards, specific legal
representation, community requests (such as the Economic Development
Corporation), landscape architects, planning services over and above the current
contract scope, and other contractual services needed such as a grant writer that
will be discusseci in the 2021-22 FY budget.
Utilizing the current 2020-21 FY expenditures, excluding Grant Funds, the
percentage breakdown are as follows: Legislative 2 percent, Executive 3 percent,
City Clerk 3 percent, Financial Services 4 percent, Legal Council 2 percent,
General Services 6 percent, Law Enforcement 34 percent, Fire Protection 19
percent, Public 'UVorks 14 percent, Public Facility Operating 3 percent, Public
Facility Improvements 7 percent, Capital Operating 1 percent, and Capital
Projects/Improv�ments 2 percent.
MAYOR WATFURD CALLED A RECESS AT 5:59 P.M. AND RECONVENED
THE WORKSHC)P AT 6:04 P.M.
JULY 27, 2021, CITY COUNCIL WORKSHOP MINUTES, PAGE 2 OF 3
159
III. AGENDA CONTINUEC)
B. Fund Distributioris and Expenditures were also explained. The Collective Balance
is the excess re�venues over expenses throughout time and the sale of assets.
The 2012 Gover�nment Accounting Standards Board required all entities to use
the following five categories: Non-Spenclable (inventory, unearned revenue);
Restricted (constrained by their providers such as legislators, grants, or
bondholders); C�ommitted (constrained for a specific purpose, the City has not
historically used this category); Assigned (amount intended for a specific purpose
such as grant funds, projects that will be reimbursed, can be multiple years
expenditures, the five-year capital improvements plan and replenishment of
depreciated assets would fall in this category); and Unassigned (remainder of
General Fund including the capital vehicles. These are use of reserves for
operating expenses and can also include multiple years expenditures, the five-
year capital improvements plan, and replenishment of depreciated assets). To
further clarify, the Fund Balances are currently categorized as follows:
Unassigned-Ger�eral Fund and non-budgeted capital vehicle fund; Assigned-
budgeted capita:l vehicle fund projects and subsequent years expenditures;
Restricted-non-spendable inventory, Law Enforcement Special Fund, and PFIF.
At the end of each budget year an audit is performed. The audited fund balances
are actual amounts that were received and expended compared to the budget
estimates. The final slide provided the 2020-21 FY revenues receipted to date to
cover all budgetnd expenses, and the difference which is the projected amount
needed to be used from reserves. The revenues are almost 80 percent. The
2020-21 FY Enci is projected to be better than what was estimated during the
budget planning process. Finance Director Riedel also noted that a budget
amendment is forthcoming based on the significant changes with revenues being
higher than the �tate estimates, the change in personnel, the substantial increase
in costs of exp�nditures, and additional fegal expense to address the Code
Enforcement back logged foreclosures and pending liens. The Mayor and Council
offered their appreciation for the informative presentation. The PowerPoint slides
have been incorporated into the minute file.
IV. ADJOURN: Mayor Wai:ford adjourned the Workshop at 6:34 P.M.
Subr�itted By: f
Civ�' 1 �--.
Lane Gamiotea, C C, City Cl�srk
Please take notice and be advised that when a person decides to appeal any decision made by the City Council
with respect to any matter considered at this meeting, s/he may need to ensure that a verbatim record of the
proceeding is made, which record includes the testimony and evidence upon which the appeal is to be based.
City Clerk media are for the sole purpose of backup for official records of the Clerk.
JULY 27, 2021, CITY COUNCIL WORKSHOP MINUTES, PAGE 3 OF 3