CITY OF CLEVELAND CALLED COUNCIL MEETING 2019 MILLAGE RATE AND TAX DIGEST 1ST PUBLIC HEARING JULY 18, 2019 CALLED COUNCIL MEETING Shan Ash at 9:00 a.m. The Called Meeting of the Mayor and Council of the City of Cleveland was called to order by Mayor COUNCIL MEMBERS PRESENT: Nan Bowen, Annie Sutton, Kevin Stanley, and Bradley Greene. On motion by. Annie Sutton, seconded by Kevin Stanley, in favor - Nan Bowen and Bradley Greene, and carried unanimously, the Mayor and Council voted to approve the agenda for the Called Council 2019 MILLAGE RATE AND TAX DIGEST - PUBLIC HEARING AND DISCUSSION-1T Mayor Ash opened the floor for public discussion. There was no one present from the public to discuss Tom O'Bryant, City Administrator, informed the 2019 digest increased due to new growth and not through the reassessment of property. While working on the budget, city staff calculated the property tax revenue at the current six-millage rate. Continuing with the same: rate will help to generate the revenue the city needs to operate. All city departments work very conservatively and have very lean Mayor Ash asked what would the city lose by taking the rollback. Mr. O'Bryant answered approximately eight to ten thousand dollars. Nan Bowen asked how can the city make up the difference. Mr. O'Bryant explained the property tax is just one: source ofrevenue and the city is diligent in collecting other fees and taxes but none of these fees and taxes are a guaranteed amount. City stafft tries toj project out the expected. revenue. Mayor Ash stated he feels the city has significant increases in revenue. Mr. O'Bryant responded you may see an increase in some ofthe franchise taxes and occupational taxes, but the amounts projected are not guaranteed. An example was given of the premiums tax that funds the fire department, one year it could be $250,000 and the next year drop to Bradley Greene stated by reviewing the digest, the city would lose closer to forty-thousand in revenue by taking the rollback. There is an increase inj property exemptions on the digest. Exemptions are typically based on properties owned by churches, schools, and some non-profits. Mayor Ash reminded the council of the large budget expenditures that will not be in the budget next APPROVAL OF AGENDA Meeting for the first public hearing of the 2019 Millage Rate and Tax Digest. CONSIDERATION the millage rate or tax digest. budgets. $150,000. Most taxes are driven by new development. year, such as the police department's new computer program. Called Council Meeting 2019 Millage Rate and Tax Digest 15t public hearing and consideration July 18, 2019. Minutes Page Two 2019 MILLAGE RATE ANDTAX DIGEST - PUBLICI HEARING AND DISCUSSION- 1ST Mr. O'Bryant confirmed the one time expenditure and gave Chief Foster credit for reducing other Mr. Greene reminded the council oft the city's auditor cautioning the city of using the fund reserve to balance the budget. In his opinion, he does not mind using the fund reserve to aj point, but feels the city Mayor Ash said, for the record, he: feels the city can take the rollback and he is against any tax increase. Mayor Ash wants to look at other ways to reduce the budget.. Mayor Ash stated, they, as mayor and Annie Sutton stated she doesn't want a tax increase, but she feels the council should consider all the population ofthe city. The city does not need to depend on the fund reserve. Ifthe city had an emergency, such as a tornado or the need for new equipment, the fund would be needed. Ms. Sutton added she personally did not think the 1.71 percent is that much of an increase. Ms. Sutton informed she has spoken with Mayor. Ash and a couple ofc council members, she has read through the information provided on the millage and feels keeping the millage at six is the right thing to do for the citizens. Ms. Sutton informed no one from the public has called her about the millage rate. She has heard from family members (sisters) but once she explained the city's goals, they were fine with not taking the Nan Bowen stated the city followed the law by posting the ad and wished the public would have shown for the hearing. Ms. Bowen informed she has not received one phone call since the ad was published in the paper. Mr. Greene also has received phone calls from the public about the millage rate. Kevin Stanley expressed his concern of using the fund reserve to balance the budget and the city doesn't need to dip into the fund any more than it has to. A rollback will increase the amount of the fund balance used tol balance the budget. Mayor Ash stated items needed to be removed from the budget. Annie Sutton stated the council should continue with the three public hearings and hopefully the council Nan Bowen agreed and suggested the city look at the rates for next year. Ms. Bowen expressed the On motion by Bradley Greene, seconded by Kevin Stanley, in favor - Nan Bowen and Annie Sutton and carried unanimously, the City Council voted to accept the first consideration oft the 2019 Millage Rate CONSIDERATION - continued expenditures to accommodate for the costs oft the new computer program. needs to keep a healthy balance in the fund reserve. Council, answer to the taxpayers. rollback. will receive public input or attend al hearing. city's obligation to meet the expected revenues for the budget year. and Tax Digest from 5.899 to 6.00. Called Council Meeting 2019 Millage Rate and Tax Digest 1St public hearing and consideration July 18, 2019 Minutes Page Three 2019 MILLAGE RATE ANDTAX DIGEST - PUBLIC HEARING AND DISCUSSION-1 1T CONSIDERATION - continued The second consideration will be held Thursday, July 18, 2019 at 6:00 p.m. ADJOURNMENT On motion by Annie Sutton, seconded by Nan Bowen, in favor- - Kevin Stanley and Bradley Greene, and carried unanimously, the Mayor and Council voted to adjourn the Called City Council Meeting, First Public Hearing 2019 Millage Rate and Tax Digest at 9:2la.m. Not present to sign Shan Ash, Mayor Kevin Stanley, %4 Vau/bnen Nan Bowen, Council Member Council Member R0D Attest: Connie Tracas, GC Douiioas Annie Sutton, Council Member City Clerk Approved by City Council August 5, 2019 2