Minutes of Board of County Commissioners September 16, 2008 First Budget Hearing for Fiscal Year

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1 Minutes of Board of County Commissioners September 16, 2008 First Budget Hearing for Fiscal Year Chairman Weaver called the Special Meeting to order at 7:00 p.m. Prayer and the Pledge of Allegiance to the Flag of the United States of America followed. The County Manager explained that Florida statutes govern the budget process. The county is required to hold two public budget hearings per year. The county s fiscal year is October 01 through September 30. The County Manager gave an overview of the tentative floor budget. Highlights of the tentative budget: Constitutional Amendment #1 has been fully implemented. No increases in non ad valorem assessments. Legislative mandated and the constitutionally required reductions in recurring revenue in the general fund of property tax revenue are down by approximately $5,000,000. Monies received in excess, due to growth in the tax roll, and set aside for the New Jail Project have been used to sustain the county through budget cuts. The monies set aside for the new jail, which was an accumulation of recurring revenue, has been eliminated. The operating costs in next year s budget have been increased with the primary reason being escalating fuel costs. A $2,000 net bonus for all employees of the county. This will be discussed further at the next budget hearing. There are five (5) salary adjustments; Landscape and Parks Director, Administrative Secretary in the Human Resource Dept., Maintenance Technician 3 position, and two Maintenance Technicians 1 positions. One new employee funded through the Property Appraiser s Office. Nine (9) roads were budgeted. The two primary roads to be improved will be Old Wire Road, and Herlong Road. The cost for the two roads will be in excess of $7,000,000. There is an allocation of $2,000,000 to address some of the existing jail conditions. The total proposed budget for is $99,592,241. This is a larger budget than last year, but the difference is in capital projects. Compared to the gas tax of other counties, twenty-eight counties in the state levy seven cents for the Local Option Sales Tax. There are eighteen counties who levy a less amount than Columbia County, and there are twenty-one counties that levy more than this county. For the largest part, the major revenues which make up the county budgets are declining. The complete presentation is attached to the original minutes. The Chair declared the public hearing open and announced that the proposed millage rate of mills is 4.71% lower than the rolled back rate. Thus, there is no increase in taxes for General Fund Citizen Stewart Lilker asked if there would be a time limit for the public to address the Board. Chairman Weaver replied that the public hearings would have a limit for each citizen to give input. Mr. Lilker said that being timed would not give him enough time to address issues he 1

2 found important such as why the current meeting had been so poorly advertised and why the meeting wasn t held on a regularly scheduled Board meeting night as it had been in years past. Mr. Lilker said that five minutes would not allow enough time for him to address other issues such as: Why the county had been paying two salaries for a Public Works Director Why the Public Works Director trainee s salary was 10% higher than the outgoing Public Works Director who had many years of experience Why the county was able to afford a 10% raise for the County Manager, but not able to afford to give county workers a raise The problems with the library, and the erroneous staffing position numbers posted to the county s website Why the County Manager was allowed to take vacation during the budget season. Mr. Lilker asked if a study had been done to determine how much it would cost the county to give county employee raises comparable to that of the County Manager. The County Manager said that he has done the computation. The Chair informed Mr. Lilker that the issue of raises would be discussed at the next Board meeting. Mr. Lilker told the County Manager that he has spoken with several county employees who would like to have the raise rather than the bonus, because over time it effects investments into the Florida Retirement System. Mr. Lilker s opinion was that consideration should be given to the fact that the County Manager received a 10 percent raise this year alone, and that county employees have not received a raise in 2 years. Mr. Lilker said the Board should factor in a 10% raise for county employees stating if it is good enough for the top employee of the county, it is good enough for every employee of the county. Citizen Barbara Lemley said that she too has spoken with employees who are very unhappy that they are not going to receive a raise, but are scared to speak out regarding the issue for fear of losing their jobs. She said that if a raise could be afforded for the County Manager, the same should be done for county employees instead of a bonus. The public hearing closed. MOTION by Commissioner Williams to adopt tentative general fund budget and set tentative millage rate at mills for the fiscal year. Second by Commissioner Bailey. The motion carried unanimously. MOTION by Commissioner Skinner to adopt tentative general fund appropriations and reserves budget at $36,334,883. Second by Commissioner Bailey. The motion carried unanimously. Industrial Development Authority ( IDA ) The County Manager said the IDA is a dependent special district requiring the millage to be established by the Board of County Commissioner. It is millage based and reflects a slight decrease from the current year to the next fiscal year. The mission of the IDA is to promote local business and seek out new business and industry. The public hearing opened. 2

3 Chairman Weaver announced that this budget for the dependent special district has a tentative millage rate of.124 mills, which is 5.34% lower than the rolled back rate. Citizen Stewart Lilker said it s his understanding that the IDA consists of three full time employees; receptionist, assistant director, and director. He pointed out that the IDA brought in very little business into Columbia County in He questioned why the director would need a $55,000 per year assistant if things are so slow. He suggested it may be possible to let the receptionist assist with some of the assistant s duties or at the very least, change assistant director s position to a part-time position for the time being. He asked what the assistant executive director s job consisted of and how she earned her pay for Commissioner Williams said that he personally feels the IDA budget is millions of dollars shy of what it needs to be in order to be competitive with larger counties and Georgia. He told Mr. Lilker that a lot of work was done in 2008 to attract businesses to Columbia County even though the businesses did not actually located here. Commissioner Williams said that they ve done a tremendous job at the IDA of enticing new businesses considering the small amount they have to work with. He told Mr. Lilker that he stands by every penny given to the IDA. The County Manager said that the Assistant Director assists with all of the duties of the Director, which includes duties such as working with the Workforce Development Board, implementing improvement goals, meeting with and working with new businesses interested in locating in Columbia County, representing the county in association shows and performing chamber functions, etc. Mr. Lilker was of the opinion that if there is no business locating in the county and the work is slow that it seems that Mr. Poole would not now need a full time assistant, which would be a significant savings to the county. He asked the Board to take a cold, hard look at the executive assistant s position which costs the county approximately $70,000 per year in benefits and salary. The public hearing closed. MOTION by Commissioner Williams to adopt tentative IDA budget and set the tentative millage rate at.124 mills for the fiscal year. Second by Commissioner Bailey. The motion carried unanimously. MOTION by Commissioner Bailey to adopt the tentative IDA appropriations and reserves budget at $559,441. Second by Commissioner Williams. The motion carried unanimously. County Funds Not Levying Ad Valorem Taxes A list of funds not levying ad valorem taxes was displayed on overhead. The County Manager spoke on the following: Transportation Trust - Much of the cash was placed into the fund for road improvement 2002 Road Improvement Debt Service This will pay out this year. MSSD The slight increase is attributed to a study by the county which picked up additional units, and is also attributed to extra cash in the contingency for that fund. Tourist Development Tax Operating The Debt of the Welcome Center will be retired by the County. Once retired, the revenue that was committed to the debt service will go into operating. Tourist Development Tax Debt Service The TDC requested that the $400,000 that is now in reserves be left there for the purpose of upgrading their sign. 3

4 Landfill Enterprise Tonnage is up and tippage fees remain the same. The Change in numbers has a lot to do with the fact that the city s haulers are now bringing city waste to Winfield. Library Enhancement Additional cash was added into the reserves for library enhancement. There were also excess revenues from other sources that were not accounted for in the current year. Connector Roads No additional monies have been appropriated for the Connector Road Project, but the interest that was accumulated remained in the budget. Road Improvement Nine additional roads have been added, which include Old Wire and Herlong Roads. All of the extra cash the county could find that could legally be moved into Road improvement was moved. The county will still need to obtain a road improvement loan in order to fund these projects. The collateral for that loan, as proposed, will be the extension of the Gas Tax. The loan should not be made until after the first of the year, because the county can only have $10,000,000 worth of tax free loans per year. The public hearing opened. Chairman Weaver announced that the following funds of the Board do not levy Ad Valorem taxes: Transportation Trust 2002 Road Improvement Debt Service Municipal Services Benefit Unit Municipal Services Special District Court Services Special Law Enforcement Tourist Development Tax (Operating) Tourist Development Tax (Debt Service) Landfill Enterprise Library Enhancement Local Housing Assistance Economic Development Connector Road Project Jail Debt Service Road Improvement Citizen Stewart Lilker asked what section of the budget the Sheriff Department monies come from and if there is a line for the Sheriff s total budget. The Chairman responded the Sheriff Department funds are within the general fund. The County Manager added that there are several lines for the Sheriff, but it would have to be added. Mr. Lilker suggested that there be a total line for the Sheriff s budget at the next hearing since public safety alone makes up approximately 25% of the budget. Answering a question from Mr. Lilker, the County Manager said regarding the proposed loan that the extended gas tax would be used for collateral. A comparison would be done to determine which would be cheaper, a bond or a straight loan. Attorney Feagle explained the good faith and the credit of the citizen of the county would not be possible without a referendum and court proceeding. In Mr. Lilker s opinion, the loan should be paid off over the life of the loan, which would ensure everyone using the roads paid their fair share of the road loan. Mr. Lilker 4

5 said that he did not want to pay, in one year, for a road with a life expectancy of 30 years. He said it should be paid for similar to that of impact fees. Mr. Lilker asked it was possible to use enhancement funds for the IT needs of the library instead of contracting the needed service out. The County Manager responded that he and Mr. Lilker have discussed this in the past, and the issue for him [County Manager] is that he is not inclined to intercede and put together a proposal for the Board that is not supported by the staff on either side. The County Manager said that the services are now being provided in an economical fashion. Mr. Lilker said it is beyond his understanding why a public library and county residents are forced to wait months on Wi-Fi service simply because the outside source is sick. Citizen Barbara Lemley asked what is included in Court Services. The County Manager replied that those are the things Columbia County is obligated to pay for as it relates to civil and criminal courts. Regarding the Local Housing Assistance Program, Ms. Lemley asked why there is loan forgiveness by the county when a home owner does not fulfill the terms of their obligations. The County Manager responded that typically the loan would only be forgiving if it is in the taxpayer s best financial interest. It is very rarely that a loan is forgiven. Citizen L.J. Johnson asked for clarification as to whether there are planned cutbacks with public library hours and staffing.. The County Manager responded that Amendment V was a state sponsored initiative that if passed would do away with the local millage for the Columbia County School Board to be replaced by other revenues. The lost revenues would be supplanted by the legislature. Local government depends greatly on state shared revenues as was seen in the budget presentation. The County Manager explain that funds such as equalization dollars, half cents sales tax distributions, state revenue sharing, etc. all become fair game in that process because they are based on legislative formula. Anything the legislature gives, they can also take away. Mr. Johnson was reminded that for some time there have been in-depth, open discussions that there is an economic down turn and that there will be ripple affects from the top to the bottom. The budget reflects no funding cuts for the library. Mr. Johnson thanked the County Manager for his answer and relinquished his remaining four minutes to Citizen Stew Lilker so that he [Lilker] could finish what he was discussing when his [Lilker] time ran out earlier. The Chairman responded that he would not be allowed to relinquish his time to anyone else and that each person is only allowed five (5) minutes to speak. Citizen Rita Hedrick addressed the Landfill Enterprise asking if City residents are charged the same rate as county residents in terms of usage. The County Manager replied that the County has nothing to do with the City s collection fees or any control over what fees are assessed by the City to its residents. The tippage fees are uniform for all. Tippage fees are based on the expected operating costs during the year. A portion of the tippage fee is set aside in a reserve account to pay for future expansion when needed. Ms. Hedrick and the County Manager very briefly discussed recycling. The public hearing closed. 5

6 The Chair called for a motion on the following budgets: Transportation Trust $11,617, Road Improvement Debt Service $860,000 Municipal Services Benefit Unit $9,560,747 Municipal Services Special District $4,241,402 Court Services $756,350 Special Law Enforcement $47,000 Tourist Development Tax (Operating) $854,225 Tourist Development Tax (Debt Service) $400,000 Landfill Enterprise $4,163,150 Library Enhancement $2,229,763 Local Housing Assistance $523,500 Economic Development $1,691,400 Connector Road Project $9,075,073 Jail Debt Service $2,000,000 Road Improvement $17,637,078 MOTION by Commissioner Bailey to approve tentative budgets as presented. Second by Commissioner Williams. The motion carried unanimously. ANNOUNCEMENT by Chairman Weaver that the final budget hearing will be held on Thursday, September 25, 2008 at the School Board Administrative Complex Auditorium at 7:00 p.m. There being no further business to come before the Board, the meeting adjourned. ATTEST: P. DeWitt Cason Clerk of Circuit Court Board of County Commissioners 6

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