Loading...
2016-06-23 Approved MinutesCITY OF OKEECHOBEE AUGUST 23, 2016, SPECIAL CITY COUNCIL MEETING 55 SE 3RD AVENUE * COUNCIL CHAMBERS * OKEECHOBEE, FL 34974 SUMMARY OF COUNCIL ACTION PAGE 1 OF 5 II AGENDA II COUNCIL ACTION - DISCUSSION - VOTE II CALL TO ORDER - Mayor August 23, 2016, Special City Council Meeting, 6:00 P.M. II. MAYOR, COUNCIL AND STAFF ATTENDANCE - City Clerk Mayor James E. Kirk Council Member Noel A. Chandler Council Member Mike O'Connor Council Member Gary Ritter Council Member Dowling R. Watford, Jr. City Administrator Marcos MontesDeOca City Attorney John R. Cook City Clerk Lane Gamiotea Deputy City Clerk Bobbie Jenkins Police Chief Denny Davis Fire Chief Herb Smith Finance Director India Riedel III. OPEN PUBLIC HEARING FOR ADOPTION OF FIRE ASSESSMENT RESOLUTION - Mayor A.1.a) Motion to adopt proposed Resolution No. 2016-07, related to the provision and funding of fire protection services and facilities - City Attorney (Exhibit 1). b) Public comments and discussion. Mayor Kirk called the August 23, 2016, Special City Council Meeting to order at 6:01 P.M. City Clerk Gamiotea called the roll: Present Present Present Present Present Present Present Present Present Absent (Major Peterson in attendance) Present Present MAYOR KIRK OPENED THE FIRE ASSESSMENT PUBLIC HEARING AT 6:02 P.M. Motion and second by Council Members Chandler and Ritter to adopt proposed Resolution No. 2016-07, related to the provision and funding of fire protection services and facilities. Attorney Cook read proposed Resolution No. 2016-07 by title only as follows: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA, RELATING TO THE DELIVERY AND FUNDING OF FIRE PROTECTION SERVICES AND FACILITIES WITHIN THE CITY; DETERMINING THAT CERTAIN REAL PROPERTY IS SPECIALLY BENEFITED BY FIRE PROTECTION SERVICES AND FACILITIES; ESTABLISHING THE METHOD OF ASSESSING COSTS ASSOCIATED WITH FIRE PROTECTION SERVICES AGAINST REAL PROPERTY SPECIALLY BENEFITED THEREBY, ESTABLISHING OTHER TERMS AND CONDITIONS OF THE ASSESSMENTS; APPROVING THE FIRE PROTECTION SERVICES ASSESSMENT ROLL FOR FISCAL YEAR 2016-17; PROVIDING THE METHOD OF COLLECTION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE." 2 AUGUST 23, 2016 - SPECIAL MEETING - PAGE 2 OF 5 II AGENDA II COUNCIL ACTION - DISCUSSION - VOTE II III. FIRE ASSESSMENT PUBLIC HEARING CONTINUED A.1.16) Public comments and discussion on proposed Resolution No. 2016-07 continued. Mayor Kirk yielded the floor to the City's Consultant Manager, Mr. Erick van Malssen, and Mr. Peter Napoli of Burton and Associates' to provide a presentation on results of the final version of the "Fiscal Year 2017 Fire Rescue Assessment Study." He began by explaining background information in that City Fire services are currently funded through property taxes and other general fund revenues. Implementing a Fire Assessment provides the City with an alternative funding mechanism that apportions costs to property owners by the benefit received for services. There are fewer exemptions provided for in assessments versus exemptions allowed for ad valorem taxes, providing a more predictable source of revenue. The methodology has been tested and verified in the Florida Court system and provides that there must be a logical relationship between the services provided and the benefit to real property assessed. The calculations recommended were developed so that costs incurred by the City to provide fire service would be recovered through Assessments to properties, in proportion to the benefit received by the demand for service as reflected in the calls for service (over the last four years) from three property types (or classes). Emergency Medical Service (EMS) calls and costs were excluded since Okeechobee County already has an EMS Assessment on properties within the City. Property owners cannot be assessed twice for the same service; the City does not provide EMS service, only fire services and prevention. The total projected costs to provide fire protection services and preventions within the City were presented at the July 19, 2016, Workshop and Regular Meeting. The City Council is proposing to implement the total costs over a four-year period, only 25 percent of the total costs are being projected for FY 2016-17. These amounts are listed, by each property class as follows: Residential (assessed per dwelling unit) $119.00; Non -Residential (commercial and industrial uses, assessed based on square footage of structures on the property with a maximum of 144,000 square feet) $0.08 per square foot; and Vacant Lots (no structures, assessed per parcel) $31.00. It is required that the Assessment provide an exemption for government and agricultural properties. The City Council can consider other exemptions, such as churches and non-profit organizations. After the first year of implementing the Assessment, the City Council would then conduct annual public hearings to consider increasing the assessments in 25 percent increments over the next three fiscal years. The Mayor and City Council have instructed Staff to lower the Millage Rate one-half percent for the FY 2016-17 Budget. As required, notices were mailed to individual property owners explaining their property classification and assessment amount. On behalf of the City, Burton and Associates sent the notices. Clerk Gamiotea provided a memorandum explaining 107 of those notices were returned to City Hall and marked "unable to forward;" an additional 25 were returned and re -mailed as forwarding information was provided. Two notices were sent to the new property owners as the previous owners called the City and relayed the information. To date, the City has received 26 phone calls and two written responses; one being from the Okeechobee Presbyterian Church, requesting churches be exempt from the Assessment, the other from Ms. Judith Hill asking that the Assessment be lowered. AUGUST 23. 2016 - SPECIAL MEETING - PAGE 3 OF 5 AGENDA III. FIRE ASSESSMENT PUBLIC HEARING CONTINUED A.1.b) Public comments and discussion on proposed Resolution No. 2016-07 continued. COUNCIL ACTION - DISCUSSION - VOTE Mayor Kirk then opened the floor to receive public comments. Mr. Frank Irby of 1385 Southeast 23rd Street asked several questions related to specific projected amounts listed within Table 1, titled "Projected of Fire Rescue Net Revenue Requirement," of Mr. van Malssen's presentation. The first question referred to the Assessment Costs to be paid by the City to the County Tax Collector and Property Appraiser Offices. This cost was noted to be 2 percent of the Net Revenue Requirement and is an administrative fee charged to include the assessment on the tax bills, collection of the assessment and disbursement to the City. The projected amount for the first year is $42,000.00 to each office. The second question referred to the Fire Insurance Premium projected amount to be deducted from the Expenditures of the Assessment Calculation. Provided in Florida Statute 175.041, the State collects a tax in the amount of 1.85 percent of the gross amount of receipts from policy holders on all property insurance premiums. This tax is distributed to the Municipal Firemen's Pension Trust Fund. Since this is a tax the City receives, which is used specifically for Firefighters, the amount must be deducted. Mr. Irby then stated he was at the December 3, 2015, meeting at which this Assessment was first discussed. He recalled one of the reasons for implementing the Assessment was due to the number of properties paying $100.00 or less in property taxes, yet receiving fire services. After briefly sharing the results of the City's prior year audits, he commended the Mayor and Council on the great job they have done controlling expenses especially during the economic downturn. He continued further by commenting that providing a service and charging for it is fine, but in doing so, the Council should consider a reduction of at least 1.5 mils to the Millage Rate to offset the assessment for property owners. Several citizens presented their case in requesting church and non-profit organization properties be exempted from the proposed Assessment. These individuals were Mr. Allen Patterson of 1404 Southwest 2nd Avenue, on behalf of the Okeechobee Presbyterian Church. Pastor Daniel Stearsman, Okeechobee Church of Christ located at 1401 South Parrott Avenue, Pastor Loy Mershimer of 312 Northwest 12th Avenue, Executive Director of the Ministerial Association of Okeechobee, and Commander Daniel Fennell of the American Legion Post 64. Mr. Devin Maxwell, a commercial building owner of 207 West South Park Street, offered an argument related to the non-residential assessment and the type of use to be applied. He stated removing building valuation and use on commercial property will create a disproportioned burden. He recommended the Council consider adding building valuation into the calculation of assessment. There were other examples offered where only a portion of an older commercial structure could be rented out yet the entire structure is factored in for the calculation. He then turned to commercial offices such as doctors' offices and nursing homes, for which an EMS Assessment is already being paid, and questioned whether the data factored in these types of facilities would also be paying a fire assessment based on square footage, when the majority of their type of service needed is EMS. Ms. Debra Nemec, owner of a commercial building located at 911 West South Park Street, stated her agreement with Mr. Maxwell's presentation and urged the Council to consider it. Adding the comment, ultimately, this additional tax burden will be passed onto the tenant, and could hurt the growth of the City. 2 AUGUST 23.2016 - SPECIAL MEETING - PAGE 4 OF 5 AGENDA III. FIRE ASSESSMENT PUBLIC HEARING CONTINUED AA.b) Public comments and discussion on proposed Resolution No. 2016-07 continued. COUNCIL ACTION - DISCUSSION - VOTE Mr. Mack (Hoot) Worley, business owner within the City Limits, addressed the City Council stating his agreement with the Assessment. However, he agreed with exempting church properties. It was his opinion that businesses follow business opportunity, not what the current tax rate is, and urged implementing a landscape assessment in addition to the fire assessment, so local businesses can be as beautiful as the areas on the coast. Mr. Dave Elberg asked how mobile home parks would be assessed. Mr. van Malssen replied each space is a residential unit for mobile home parks, the assessment would be computed by multiplying the number of spaces by the unit rate of $119.00 for the first year. Recreational Vehicles (RV's) are assessed by square footage as per state statute. Ms. Linda Maysell asked the Council to take into consideration elderly individuals on a Social Security Income stating tax increases would cause a struggle financially to people on a fixed income. Following public comments, the Mayor and City Council discussed the issue at length. In order for the Fire Assessment to be implemented in Fiscal Year 2016-17, it must be adopted prior to September 15 and have sufficient time to have the assessment classifications, and square footage on non-residential properties verified. Council Members Ritter and Watford noted the time constraints appear to be an issue, as it does not allow the number of issues/questions presented during public comment to be addressed. Council Member O'Connor suggested it would be wiser to wait and implement this when the economy recovers more. Council Member Chandler added the Assessment puts a burden on everybody. However, so does raising the tax rate. The City cannot continue to keep putting off projects needed to help with economic development or the purchase of equipment. Funds are needed to provide the services the citizens want. When funds are not there, neither are the services and the time may come when harder decisions will have to be made. Each Council Member also stated they were not in favor of adopting the Fire Assessment at this time. However, it was suggested having a more structured time line next year would provide additional public input and sufficient time to address any issues presented. In closing Mayor Kirk took time to explain (Council Chambers was over capacity by attendees from the public) why the Fire Assessment was considered, and that the matter has been discussed at several public meetings (those being October 20, 2015, a Public Hearing held December 15, 2015, and a Workshop and Regular Meeting held on July 19, 2016). The City's revenues have remained the same causing projects and services to be delayed for several years; now the "putting off has come due." These large expenditures will be paid for by funds that are non -replenish able. Department Heads are having to address ten-year plans and budgeting for their personnel, operating expenses, building repairs and maintenance, infrastructure repairs and maintenance throughout the City, and unfunded mandates by the State. At some point adjustments have to be made, either from Millage increases or other means, as funds cannot continue to be pulled from the reserves. The citizens get a great service for their dollar by our employees; the City Staff takes that seriously. AUGUST 23, 2016 - SPECIAL MEETING - PAGE 5 OF 5 5 AGENDA III. FIRE ASSESSMENT PUBLIC HEARING CONTINUED A.1.b) Public comments and discussion on proposed Resolution No. 2016-07 continued. c) Vote on motion CLOSE FIRE ASSESSMENT PUBLIC HEARING - Mayor Kirk X. ADJOURNMENT - Mayor 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, he/she may need to insure 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 t ATTEST: Lane Gamiotea, CM , City Clerk he Clerk. r James E. Kirk, Mayor COUNCIL ACTION - DISCUSSION - VOTE The Mayor and Council took time to offer appreciation to the consultants, and confirmed should the matter not pass, the Study, research, and data can be utilized next year to reconsider the matter. With no further discussion, Mayor Kirk called for a vote. KIRK — No RITTER — NO VOTE: CHANDLER — NO WATFORD — No O'CONNOR — NO MOTION DENIED. MAYOR KIRK CLOSED THE FIRE ASSESSMENT PUBLIC HEARING AT 7:14 P.M. There being no further discussion, nor items on the agenda, Mayor Kirk adjourned the meeting at 7:14 P.M.