MINUTES OF THE SPECIAL SARASOTA CITY COMMISSION MEETING OF SEPTEMBER 3, 2003, AT 6:00 P.M. PRESENT: Vice Mayor Richard F. Martin, Commissioners Fredd "Glossie" Atkins, Danny Bilyeu, and Mary Anne Servian, City Manager Michael A. McNees, City Auditor and Clerk Billy E. Robinson, and City Attorney Richard J. Taylor ABSENT: Mayor Palmer PRESIDING: Vice Mayor Martin The meeting was called to order in accordance with Article III, Section 9(a) of the City of Sarasota Charter at 6:00 p.m. City Auditor and Clerk Robinson gave the Invocation followed by the Pledge of Allegiance. Vice Mayor Martin stated that Mayor Palmer is not present due to illness and requested that City Auditor and Clerk Robinson explain the public hearing sign-up process. City Auditor and Clerk Robinson stated that all persons wishing to speak at the public hearing are requested to complete a Request to Speak form; that speakers at the non quasi-judicial public hearing will have five minutes to speak; that speakers will be timed and will be advised when one minute remains; and repeated for the benefit of those present in the Chambers the Pledge of Public Conduct as adopted by the Commission as follows: We may disagree, but we will be respectful to one another. We will direct all comments to issues. We will avoid personal attacks. All individuals wishing to speak during the public hearing were requested to stand and were sworn in by City Auditor and Clerk Robinson. 1. FIRST PUBLIC HEARING RE: PROPOSED ORDINANCE NO.03-4498, APPROVING A BUDGET; AND MAKING APPROPRIATIONS OF SUMS OF MONEY FOR ALL EXPENDITURES OF THE CITY OF SARASOTA AND THE ST. ARMANDS SPECIAL BUSINESS NEIGHBORHOOD IMPROVEMENT DISTRICT; FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2003, AND ENDING ON SEPTEMBER 30, 2004; PRESCRIBING THE TERMS, 1 CONDITIONS AND PROVISIONS WITH RESPECT TO THE ITEMS OF APPROPRIATION AND THEIR PAYMENT; PROVIDING FOR SUPPLEMENTAL BOOK 54 Page 26104 09/03/03 6:00 P.M. BOOK 54 Page 26105 09/03/03 6:00 P.M. APPROPRIATIONS AND REAPPROPRIATIONS, PROVIDING FOR THE SEVERABILITY OF PARTS HEREOF IF DECLARED INVALID; ETC. (TITLE ONLY) = PASSED ON FIRST READING; AGREED THE REQUEST OF THE ST. ARMANDS SPECIAL BUSINESS NEIGHBORHOOD IMPROVEMENT DISTRICT WILL BE PLACED ON THE AGENDA OF A REGULAR COMMISSION MEETING FOR DISCUSSION AND CONSIDERATION (AGENDA ITEM I) CD 6:01 through 7:08 Vice Mayor Martin opened the public hearing and requested that Staff come forward for the presentation. Gibson Mitchell, Director of Finance, came before the Commission and stated that the current public hearing is the first of two required public hearings concerning proposed Ordinance No. 03-4498 to adopt the budget for the City of Sarasota and the St. Armands Special Business Neighborhood Improvement District for the fiscal year (FY) beginning October 1, 2003, and ending September 30, 2004; that the proposed budget for FY 2003/04 results in an operating millage of 2.6917 mills which is unchanged from the operating millage of 2.6917 mills for FY 2002/03; that the Board of Directors for the St. Armands Special Business Neighborhood Improvement District has approved a 2.0 mill levy on the property in the St. Armands Special Business Neighborhood Improvement District for FY 2003/04; that the 2.0 levy on the St. Armands Special Business Neighborhood Improvement District will be in addition to the Citywide millage; that the State Truth In Millage (TRIM) Bill requires municipalities to measure the proposed operating millage for ad valorem taxes in terms of the aggregate rolled-back rate, which represents the required millage rate necessary to yield the same ad valorem tax revenues generated during the FY 2002/03 budget; that the aggregate rolled-back rate is 2.3897 mills for FY 2002/03; that the proposed operating millage rate, calculated at 2.7273 if adjusted for the 2.0 mill tax levy for property in the St. Armands Special Business Neighborhood Improvement District, is a 14.1273 percent increase over the rolled-back rate of 2.3897; that the higher operating millage calculation must be used to report the percentage increase over the rolled-back rate; that the property taxable value of the City is $5,578,077,707 which represents a 13.9 percent increase or $680,617,309 over the FY 2002/03 amount of $4,897,460,398. Mr. Mitchell continued that the proposed operating millage of 2.6917 mills will yield $12,474,250 in ad valorem tax revenue for the General Fund which is an increase of $1,463,006, or 13.29 percent over the FY 2002/03 budget; that the TRIM Bill also requires the specific purposes for which the ad valorem taxes are being increased which are as follows: Police pension contribution $1,622,422 Fire and pension contribution $ 800,000 Mr. Mitchell further stated that the voted debt service millage at 0.4582 mills is a 16.00 percent decrease from the current FY 2002/03 debt service millage of 0.5455 mills; that the total millage required to finance the proposed budget is 3.1499 mills, which is a 0.0873 mill decrease, or 2.7 percent less than the current FY 2002/03 millage of 3.2372 mills; that the impact of the millage decrease to the average owner occupied taxable home valued at $165,509 as of October 2002, reduced by the $25,000 homestead exclusion, would be $140,509, a $12.27 decrease from FY 2002/03. Mr. Mitchell stated further that the certified taxable value of the property in the St. Armands Special Business Neighborhood Improvement District is $99,415,508 and will yield approximately $190,000 in net ad valorem tax revenue for the St. Armands Special Business Neighborhood Improvement District; that the specific purposes for which the ad valorem taxes are being created are as follows: Loan repayment to the City $106,590 Upgraded landscape maintenance $ 20,000 - Promotional activities $ 47,855 - Bank loan interest $ 10,555 Legal and insurance costs $ 3,500 Office supplies $ 1,500 Mr. Mitchell stated that the St. Armands Special Business Neighborhood Improvement District proposed budget is different from the budget presented at the 2003 Budget Workshops; that the Commission approved borrowing by the St. Armands Special Business Neighborhood Improvement District $800,000 through an unsecured line of credit from a financial institution and drawing $180,000 to fund a neck-out at the west approach to St. Armands Circle from Lido Beach (Lido neck-out) at a cost of $135,000, which included a $10,000 Staff-recommended contingency, and a crosswalk on BOOK 54 Page 26106 09/03/03 6:00 P.M. BOOK 54 Page 26107 09/03/03 6:00 P.M. Boulevard of the Presidents for approximately $45,000; that the Board of Directors for the St. Armands Special Business Neighborhood Improvement District approved the following changes to the bank borrowing portion of the budget: Crosswalk $ 45,000 Lido Neck-Out $107,000 Promotional Activities $ 93,000 Total $245,000 Mr. Mitchell continued that the Board of Directors for the St. Armands Special Business Neighborhood Improvement District has also requested the Commission consider paying the St. Armands Special Business Neighborhood Improvement District back $85,000 which represents one half of the capital expenditures for the Lido neck-out at $125,000 which includes Engineering fees already expended in FY 2002/03 plus the crosswalk at $45,000, for a total of $170,000; that the Board of Directors for the St. Armands Special Business Neighborhood Improvement District has also requested the payback by the City to the St. Armands Special Business Neighborhood Improvement District be spread over two years at $42,500 per year; that the request does not affect the proposed FY 2003/04 budget. The following people came before the Commission: Linda Holland, President, Gillespie Park Neighborhood Association 617 Gillespie Avenue (34236), stated that she is representing the Gillespie Park Neighborhood Association but has also been asked by the members of the Nuisance Abatement Board to make comments regarding the potential fiscal year (FY) 2003/04 budget reduction or elimination of the Sarasota Police Department (SPD) Neighborhood Enforcement Team (NET) officers; that the initial reaction to the discussion of the possible reduction in police officers was intense; that people are passionate concerning the neighborhoods in which they live; that people have the need to express concerns regarding neighborhood problems; that the City has an enviable Police Department and neighborhood residents who work well with the SPD; that the possibility the equation may change by the reduction of police officers on special enforcement teams such as the NET is frightening; that the Gillespie Park Neighborhood Association has worked with the Community Resource Team officers for many years; that Community Resource Team officers are recalled opening one of the units in the Cohen Way public housing complex and collecting books sO the children could learn to read; that the effort was embraced by the community and exemplifies community policing; that community policing is necessary not only in public housing but also in the Gillespie Park neighborhood; that the first Community Resource Team officers were Ken Evans and Chip Halsey; that the officers worked with neighbors in the Gillespie Park neighborhood and related well with everyone; that one evening Officer Evans contacted her regarding a family with five children sleeping in Gillespie Park; that a vacant rental unit personally owned was offered as shelter to the family; that losing a wonderful relationship between the neighborhoods and community policing creates an intense reaction. Ms. Holland continued that neighborhood volunteers participating in Court Watch, Inc., have worked with the NET and Community Resource Team officers for years and sometimes late at night; that a different world now exists late at night; that the Court Watch volunteers are aware of occurrences in the neighborhoods; that people without similar situations in City neighborhoods are lucky; that the Gillespie Park neighborhood is an at-risk neighborhood; that community policing and Court Watch are necessary to clean up the neighborhood; that cleaning up the neighborhood is a joint effort between the neighbors and the police; that the possibility of losing the relationship is a concern; that the Gillespie Park neighborhood is transforming into a good neighborhood; that other neighborhoods need assistance; that the Central Cocoanut, Leon Avenue, and North Tamiami Trail neighborhoods need assistance; that the assistance should be provided through a joint effort between the neighbors and community policing through special enforcement units; that losing any aspect of the effort is a concern; that the Gillespie Park neighborhood has become a poster child for community policing; however, other neighborhoods require assistance; that maintaining neighborhoods once cleaned up by community policing will still be necessaryi that neighborhood watch programs Court Watch, the Nuisance Abatement Board, and the Prostitution Exclusion Zone are good tools; that special police enforcement teams are critical tools and must be preserved; that the FY 2003/04 budget is tough; that the City is creative and should identify alternative methods to continue funding important City functions such as the community policing programs. Bonita Heinzen, 1166 Cocoanut Ave (34236), representing Central/ Cocoanut Neighborhood Association, stated that an expression often heard is, "Where are the police when you need them?"; that the Neighborhood Enforcement Team (NET) officers are always BOOK 54 Page 26108 09/03/03 6:00 P.M. BOOK 54 Page 26109 09/03/03 6:00 P.M. present; that a situation took place at her home at 2:30 a.m. one morning; that she awoke to gun shots; that after crawling out of bed and going outside, a dead body was seen; that the NET officers were on the scene before she realized the need for police protection; that the NET officers had shot a person believed to have come in the neighborhood to purchase drugs; that the individual had wielded a knife; that the scenario could have been worse if the situation had taken place the previous evening since she was sitting on the porch alone; that the City's police officers are excellent; that her home has been burglarized many times; that the police are called and eventually respond; however, the NET officers are always present which is more important; that the neighborhood is dangerous and will become worse without the presence of the NET officers; that the Commission is requested to do anything possible to keep the NET officers patrolling in the neighborhoods; that the NET officers' jobs are not finished. Cathryn Girard, 1501 Main Street (34236), representing Cobblestone Gallery and Tea Room, stated that she is the owner of Cobblestone Gallery and Tea Room on Main Street; that two endemic issues in the City are concerns which are: 1) maintenance and upkeep of City projects, and 2) benign neglect of Main Street; that the Commission may protest since millions of dollars are being spent on streetscape improvements; that Main Street regardless of the streetscape improvements remains shabby; that Main Street is dirtyi that bringing out-of-town guests to Main Street is an embarrassment; that the wish is sometimes to have the Cobblestone Gallery and Tea Room in another location; however, her commitment is to make Main Street attractive; that the Commission as well as previous Commissions can be justly proud several new projects are underway on and around Main Street; however, future large scale development has little if anything to do with changing the basic personality which Main Street currently exudes; that to cite a famous story: "The emperor is not wearing any clothes and is naked"; that the reason for appearing before the Commission is to request a second look be taken at the FY 2003/04 budget to consider allocating funds to: 1) maintenance which will make the sidewalks sparkle, 2) tree maintenance which will allow store fronts to be seen by passing motorists, 3) cleaning of public art, 4) reinstitution of the storefront assistance or facade improvement program through either matching funds, grants, or interest free loans, 5) landscaping around trees, 6) improvement of the economic vitality of retail business opportunities on Main Street. Ms. Girard continued that extensive research has been performed regarding Main Street and downtown revitalization in Florida and other parts of the Country; that in nearly every case, cities which have accomplished the most successful revitalization have worked in partnership with Main Street and/or downtown groups and the cities' financial contribution has been through Tax Increment Financing (TIF) Funds or Community Development Block Grant (CDBG) funding; that although knowledgeable regarding TIE and CDBG funding sources, expertise is not held; that City officials always indicate funding is committed elsewhere or the City is already over committed; that funding is not available for existing Main Street structures and upkeep; that the Commission is requested to sharpen pencils or erasers and go back to the drawing board to identify funds in the FY 2003/04 budget to support giving Main Street a cleaner, brighter, fresher look to welcome all the new neighbors the City will have at the time the large development projects are completed; that the revitalization of Main Street has gone through several stages; that the time has come for all Main Street stakeholders to work together to achieve a new level of attractiveness and vitality which cannot be accomplished without participation and commitment from City government, including financial backing. Ms. Girard further stated that while visiting the Neighborhood Development Department offices a brochure was read which encourages neighborhoods to submit requests for new sidewalk projects; that the beauty and importance of sidewalks were emphasized throughout the brochure; that the point scoring system giving the highest values to sidewalks leading to the Downtown or other commercial areas is considered bizarre since the City is struggling to secure funds to clean up the sidewalks on Main Street while new sidewalks are being encouraged and received high scores if leading to Main Street; that the Commission is requested to reconsider some budget allocations to ensure funding for ongoing maintenance for new projects. Maria Gelinas, 1325 Cocoanut Avenue (34236), representing Central/Cocoanut Neighborhood Association, stated that she has come before the Commission to show support for the Neighborhood Enforcement Team (NET); that the NET team has been an incredible help to the Central Cocoanut neighborhood; that neighbors finally feel safe after six years with the knowledge the NET officers are in the neighborhood; that unfortunately, terrible crime oriented activities are continuing; that three drug deals BOOK 54 Page 26110 09/03/03 6:00 P.M. BOOK 54 Page 26111 09/03/03 6:00 P.M. were seen earlier in the day across the street from her home; that people are coming in from other neighborhoods to buy drugs; that the NET officers respond to the problems; that the Commission is requested to support the NET officers and assist the neighborhood; that the people living in the neighborhood need the support of the Commission. Mickie Emberton, 3190 Bellevue Street (34237), President, Bellevue Terrace Neighborhood Association, stated that she has been involved with the City for the past two years and with the Bellevue Terrace Neighborhood Association during the last yeari that the Bellevue Terrace neighborhood has come together and grown; that the neighborhood has received significant help from the Sarasota Police Department (SPD); that the Neighborhood Entorcement Team (NET) has been heavily involved with the neighborhood; that the involvement must continue; that many neighborhoods continue to have crime related problemsi that the NET officers help discourage the crimes taking place in the Central Cocoanut neighborhood; that response time is excellent; that the neighborhoods are becoming safer due to community policing. Karen Krumel, 1391 13th Street (34236), stated that she is representing her family; that she is a single mother with three children; that her two oldest daughters are honor students at Booker High School; that her son attends the Sarasota School of Arts and Sciences and rides his bicycle to school each day; that the NET officers are personally endearing; that she lives on the corner of 13th Street and Central Avenue; that often, a NET police vehicle is seen on the corner rather than a regular City patrol vehicle which is astounding considering the small number of officers patrolling in NET vehicles; that the salaries of the NET officers are worth the investment, especially considering the neighborhoods patrolled are high crime areas; that everyone is aware of the problems in the Central Cocoanut neighborhood; that successful crime Eighting in the neighborhood will not continue without the presence of the NET officers who have a visual presence in the neighborhood; that the community policing program works; that doing away with a program which works is inconceivable; that statistics are available indicating the program works; that the NET officers are an investment and may not be necessary in the future if the investment remains for the present time; that the neighborhood needs the presence of the NET officers; that the reason for remaining in the neighborhood is due to the presence of the NET officers. Ms. Krumel continued that she has heard Commissioner Atkins is opposed to continuing the NET program which is surprising; that the NET program will pay off; that a reason for continuing the NET program can be seen by travelling through the neighborhood; that the Commission should consider individuals raising children in the neighborhood; that her home is not rented; that a $100,000, 30-year investment was made in the neighborhood; that the neighborhood is in the City; that the investment should remain intact. Vicki Fry, 178 North Washington Drive (34236), Director, St. Armands Special Business Neighborhood Improvement District, stated that the Commission is urged to consider the interest free loan being offered by the Board of Directors for the St. Armands Special Business Neighborhood Improvement District since public safety is the concerni that the St. Armands Special Business Neighborhood Improvement District is one of the highest pedestrian traffic areas in the City; that an opportunity is available to construct the Lido neck-out and crosswalks which will greatly improve the safety of pedestrians; that the improvements have been postponed for years. Ms. Fry continued that the efforts of the Sarasota Police Department (SPD) are appreciated; that she lives on St. Armands Key; that a transient problem exists; that many transients travel to and from Lido Beach and through the neighborhoods; that citizens are grateful of the efforts and quick response of the SPD; that Police Chief Peter Abbott has admirably led the SPD; that the efforts of Chief Abbott should be supported. Martin Rappaport, 1241 Tree Bay Lane (34242), Chair, St. Armands Special Business Neighborhood Improvement District, stated that he is a proud citizen of Sarasota, Executive Director of the Commercial Landowners Association of St. Armands, Inc., and Chair of the St. Armands Special Business Neighborhood Improvement District; that the Lido neck-out and crosswalks are improvements to ensure public safety; that pedestrian safety is of the utmost importance; that the Commissioners are not envied and have many projects; that funding is tight; that reductions and difficult decisions must be made; that the landowners, merchants, and residents have been organized on St. Armands Key to assist the City with necessary improvements; that the St. Armands Special Business Neighborhood Improvement District has been created, is partnering with the City, and is ensuring improvements happen; that some expense of maintenance and capital improvements are being shared with the City; that a BOOK 54 Page 26112 09/03/03 6:00 P.M. BOOK 54 Page 26113 09/03/03 6:00 P.M. suggestion is for other neighborhoods to attempt the same; that the City cannot not fund 100 percent of necessary projects; that partnering will benefit everyone. Mr. Rappaport continued that the impact of the millage decrease to the average owner occupied home was indicated as a $12.27 decrease; that the preference is to spend $12.27 to keep the Sarasota Police Department (SPD) proactively patrolling neighborhoods; that a significant amount of development is taking place in the City; that a considerable number of people are coming into Sarasota; that the amount of growth in the last 17 years has been tremendous; that growth will significantly increase with new development; that the SPD has been extremely proactive and averted many situations prior to the awareness of business and land owners of a problem; that St. Armands Key has remained safe; that the Commission is requested to keep the Neighborhood Enforcement Team (NET) intact and not reduce the SPD's FY 2003/04 budget; that the preference is to pay a little more tax to have a safe community. Sandy Vaughn, 2135 Fourth Street (34237), representing Park East Neighborhood Association, stated that she represents the Park East Neighborhood and the Greater Downtown Sarasota Action Team; that the Commission is requested not to reduce the budget for the Neighborhood Enforcement Team (NET) for several reasonsi that individuals forming gangs are a concern; that drive-by shootings are a problem in the neighborhood; that a drive-by shooting took place on Fourth Street at Gillespie Park which is close to her home; that an innocent child was shot; that a gang related issue arose in 2002 in which a youth was stabbed to death; that the claim was the youth was stabbed in self defense; however, the altercation was gang related; that the City must address the issue regarding potential gang related behavior; that Police Chief Peter Abbott is aware of the issue; that neighbors in the Gillespie Park neighborhood are terribly concerned with gang related activity which is affecting the lifestyles of the people living in the neighborhood; that the police were recently contacted regarding a noise problem in the neighborhood; that her name was not provided due to fear of retaliation by gang members; that she is not usually bashful and has no problem reporting problems to the police; that she has become concerned and afraid; that she would rather pay higher taxes to have the knowledge the neighborhood is safe; that a new park is being created in the neighborhood; that the safety of the park is in question if occupied by gang members. Ms. Vaughn continued that the not-for-profit agency by whom she is employed is scheduling an all day workshop in November 2003 sO all the police and sheriff departments in Sarasota and Manatee Counties can share ideas and information concerning gang related crime; that people living in Sarasota do not want to admit gangs are forming; however, gangs exist; that the safety of all citizens will be jeopardized if the budget is cut; that the Commission is requested to not cut the budget for the NET officers. Commissioner Servian asked the City Manager to address the issues concerning the St. Armands Special Business Neighborhood Improvement District suggested loan to the City to fund improvements and the reduction of the NET officers. City Manager McNees stated that the Commission cannot commit to the repayment in the future as part of the adoption of the FY 2003/04 budget since the funds are not being appropriated at this time; that the funds will be appropriated at a public hearing in FY 2005/06; however, assurance can be provided; that the Commission should consider if the capital improvements are of significant importance for which funding should be advanced; that the Commission can provide support by consensusi that borrowing money for promotional activities at a cost of $47,855 is a concern since a loan should never extend beyond the useful life of the asset; that the life of a promotional campaign is relatively short. City Manager McNees continued that freezing positions in the Sarasota Police Department (SPD) is a concern; that the safety of the residents of the City is the responsibility of the Commission, the City Manager, and the Police Chief; that additional police pension contribution costs of $1,622,422 and fire pension contribution costs of $800,000 are a reality; that the General Fund is placed in a serious position before any other services are provided; that the FY 2003/04 budget was carefully reviewed; that the painful truth is the SPD budget is half of the General Fund; that the only manner to decrease expenses and avoid significant tax increases is to reduce expenditures in the SPD; that expenditures have been reduced in all other departments; that similar sacrifices have been made; that freezing the positions for FY 2003/04 is the only alternative; that the positions are not being eliminated; that the Police Chief has flexibility based on staffing level requirements and contracts and identified a reduction in NET would meet the financial requirements of the FY 2003/04 budget to avoid a tax increase; that the SPD will still BOOK 54 Page 26114 09/03/03 6:00 P.M. BOOK 54 Page 26115 09/03/03 6:00 P.M. respond to requests for service; that the City is still responsible for the safety of the citizens; that Police Chief Abbott is committed to continuing to place resources in areas with the most need; that some neighborhoods in the City have higher service needs than others; that 194 uniformed officers remain in the FY 2003/04 budget which provides significantly more police presence than all but two other cities the size of Sarasota in the State; that the City remains committed to providing the best possible level of service and to providing the service in areas in which service is most needed; that the decision is painful; that the Administration can attempt to identify reductions in other areas of the City rather than cut the budget of the SPD if the Commission chooses; however, the Commission will be requested to provide direction as to services to cut. Commissioner Bilyeu stated that neighborhoods have been working hard for years to keep neighborhoods safe; that crimes taking place ten years ago are still occurring in neighborhoods, which is sad; that the judicial system is likely at fault; and asked if the freeze will affect the level of service during FY 2003/04? Peter Abbott, Chief, SPD, came before the Commission, and stated that the individuals who came before the Commission in support of the NET officers are appreciated; that the mission is community policing; that members of the community are working with the SPD which is the goal; that no neighborhood will be forsaken; that the SPD Table of Organization is at a freeze level of 194, which was the staffing level at the time of his swearing in; however, the number fluctuates; that the SPD operates in the best manner possible; that the need for the freeze is understood and is beyond control; that the increase of the amount of the 8 percent contribution of salary to the pension plan is significant; that the positions have only been frozen rather than cut which is pleasing; that more service can be provided with more people; however, the service provided with the budgeted levels will be of first quality; that efficiencies will be examined; that technology such as the Crime View system will assist in efficiencies and quick deployment of service. Chief Abbott continued that discussions have been held with the City Manager; that the FY 2003/04 budget is difficult; that contractual and practical considerations drove the decision to freeze positions in the NET program; that flexibility is available as to the area in which the cuts are made; that 198 positions will remain at the end of the September 2003 due to attrition; that four more positions will be eliminated during FY 2003/04; that the hope is the level of service will remain the same through good management and technology changes; that a promise cannot be made the same level of service will exist every single day; that the goal is to ensure crime does not increase, the quality of life remains high, and the perception of crime remains abated; that the City has highly motivated police officers; that police officers do not support having less manpower which is expected; however, costs related to increases in contributions to pension plans cannot be controlled; that the goal is to have solvent pension plans sO good police officer candidates will be attracted to the City. Commissioner Bilyeu asked if the number of police officers planning to retire in FY 2003/04 is known? Chief Abbott stated that the number is known; however, nothing is a certainty. Commissioner Bilyeu stated that Tax Increment Financing (TIF) funds could possibly be used for community policing in the redevelopment area; and asked if the issue has been previously discussed or researched? City Manager McNees stated that utilizing TIF Funds to pay operating expenses for police officers has not been researched; that the City has expended more TIF Funds than exist; that the TIF Fund is presently in a negative position; that any further expenditure from the TIF Fund for any purpose places the TIF Fund into a greater negative position; that the TIF Fund will most likely remain in a negative position for the next two years; that having the TIF Fund in such a position is not recommended; that the State Statutes will be further researched; however, the understanding has been the TIF Fund is not available to fund operating expenses such as for police officers. Commissioner Bilyeu stated that a gang problem did not exist at the time the Nuisance Abatement Board was established; that the City now has a problem with gangs; that having a Nuisance Abatement Board and a Police Chief with experience with gang related crime is appreciated; and asked for clarification regarding the request of the St. Armands Special Business Neighborhood Improvement District to borrow money. Gibson Mitchell, Director of Finance, came before the Commission and stated that the source of the funding would be from any capital project funds available to the City in those fiscal years or from the General Fund. BOOK 54 Page 26116 09/03/03 6:00 P.M. BOOK 54 Page 26117 09/03/03 6:00 P.M. City Manager McNees stated that a binding commit tment cannot be made on a future Commission; that the Commission can indicate to the St. Armands Special Business Neighborhood Improvement District the course is reasonable and agree with the course; that the St. Armands Special Business Neighborhood Improvement District is actually borrowing the money from a financial institution; that the bank loan will be repaid partially by future City funds rather than being paid through St. Armands Special Business Neighborhood Improvement District funds; that a bank loan will exist; that the bank loan is not interest free; that the St. Armands Special Business Neighborhood Improvement District will incur the interest rather than the City. Vice Mayor Martin asked the manner in which the borrowed funds will affect the City's FY 2003/04 budget? Mr. Mitchell stated that the request of the St. Armands Special Business Neighborhood Improvement District does not affect the FY 2003/04 budget; that the funds of $42,500 requested by the St. Armands Special Business Neighborhood Improvement District are not included in the FY 2003/04 budget; that $42,500 is half of the requested repayment, which would be included in the FY 2004/05 budget; that the second payment of $42,500 would be included in the FY 2005/06 budget. Commissioner Atkins stated that the FY 2003/04 budget is supported; that since 1985, he has supported more policing activities than any Commissioner which may be one reason the City currently has problems with adequate funding as the Police Officers hired in 1985 are now becoming ready to retire; that no apologies are necessary for respecting the FY 2003/04 budget and the departments of the City; that public safety has always been strongly supported; that the SPD has always been supported; that the SPD has always supported him; that the current assembly is the first time sO much praise has been heard from the public concerning the SPD; that the contrary view is generally heard; that the process is astounding; that another group could come before the Commission and indicate the extreme opposite of the public comments just heard; that the reaction to a perception is being heard; that the Police Chief is working diligently to assure the SPD will be capable of handling any issues which arise; that the budget will be addressed again in FY 2004/05; that the situation will be reassessed to determine funds available and the needs; that crime rates are currently decreasing in the City and the Country; that crime statistics can be made available to the Commission and the public; that working toward the wholeness of the City is important; that the SPD must bear its fair share of the responsibility for funding constraints. Vice Mayor Martin closed the public hearing. City Auditor and Clerk Robinson read proposed Ordinance No. 03-4498 by title only. On motion of Commissioner Servian and second of Commissioner Atkins, it was moved to pass proposed Ordinance No. 03-4498 on first reading. Commissioner Servian stated that the motion to pass proposed Ordinance No. 03-4498 on first reading is made with great reluctance; that not having to freeze the budget of the SPD would be preferred; that unfortunately, the SPD is 50 percent of the City's General Fund budget and is the department in which the most reductions must be made to balance the budget while not raising taxes; that a fundamental requirement for the FY 2003/04 budget was not to raise taxes as property owners' assessments have increased significantly; that the double burden of increasing the millage rate in addition to the higher assessments would have seriously affected those who can least afford to pay more; therefore, the Commission was challenged with developing a fair solution; that pension and health care costs have increased dramatically; that no choice was available; that the Commission is diligently assuring on-going maintenance funds are provided for new City projects; that the Commission is doing the best possible job with the funds available to assure the City continues to sparkle to the extent possible; that the hope is Commission consensus can be reached to approve the request of the St. Armands Special Business Neighborhood Improvement District; that the area around St. Armands Circle is the heaviest traveled pedestrian area in the City; that vehicles turn directly into pedestrian lanes; that the concern is a tragedy may result; that funds must be found in the Capital Improvement Plan (CIP) to repay the St. Armands Special Business Neighborhood Improvement District, which is applauded for assisting the City with the required improvements. Vice Mayor Martin stated that the request of the St. Armands Special Business Neighborhood Improvement District is not included in the motion; and asked if the request should be considered at this time or in the future? BOOK 54 Page 26118 09/03/03 6:00 P.M. BOOK 54 Page 26119 09/03/03 6:00 P.M. Commissioner Servian stated that a motion should not be required. City Attorney Taylor stated that the two issues, i.e., the FY 2003/04 budget and the request of the St. Armands Special Business Neighborhood Improvement District, should not be mixed; that the Commission is currently considering only the FY 2003/04 budget. Vice Mayor Martin stated that the request of the St. Armands Special Business Neighborhood Improvement District could be placed on the Agenda of a future Regular Commission meeting for discussion. Commissioner Servian stated that placing the request on the Agenda of a future Regular Commission meeting is acceptable. Vice Mayor Martin stated that hearing the Commission's consensus, the request of the St. Armands Special Business Neighborhood Improvement District will be placed on the Agenda of a Regular Commission meeting for discussion and consideration. Commissioner Atkins stated that the Charter Officials have developed a FY 2003/04 budget which the City's citizens can support and live with; that the City's citizens are not used to the constraints being experienced currently; that the Main Street Streetscape Project and streetcleaning should take place as soon as possible; that Tax Increment Financing (TIF) Funds should be available prior to two years from FY 2003/04 as projects come to fruition; that an intriguing idea is to use TIF Funds for community policing, which would be supported and would be a good way to assist the City; that property owners and residents in other areas of the City have made the supreme sacrifice for property owners and residents in the TIF District for the last 20 years; that hopefully, the benefits will be realized shortly; that the residents and property owners in the TIF District could provide assistance to the rest of the City as extra TIF Funds become available; that the FY 2003/04 budget is supported; that the citizens of the City and of District 1 hopefully understand fiscal constraint was necessary. Commissioner Bilyeu stated that the budget process was overwhelming at first; that the hope is the budget process and the presentation to the Commission can be discussed further; that the presentation is excellent; however, more time to understand the numbers should be provided if possible; that the FY 2003/04 budget is supported; that an excellent Police Chief was recently hired, who seems to understand the concerns of the community and the neighborhoods and will do everything possible to assure the City's citizens are safe and feel secure; that funds were added to the FY 2003/04 budget for project maintenance sO the streets, sidewalks, etc., can be maintained in a fashion to make everyone proud, which is exciting; that the suggestion concerning the use of TIF Funds for community policing could open some avenues for discussion at a later date; that the Community Redevelopment Area has always been strongly supported; that affordable housing may be another possibility to consider; that the Commissioners are thanked for making the budget process good; that the fight was difficult; that a good year is anticipated; that placing the request of the St. Armands Special Business Neighborhood Improvement District on an Agenda of a Regular Commission meeting is supported; that the District 2 Commissioner can begin working on the request; that having fully leased space in commercial properties is important to keep the tax revenue high; that the FY 2003/04 budget is supported. Vice Mayor Martin stated that significant struggles occurred during the Budget Workshops; that the same concerns are being expressed by the Commission at the current meeting as during the Budget Workshops; that the minutia of dealing with the City are handled during the budget process, which is the time at which funding is identified; that five Commissioners listened to constituents and brought the demands to the City Manager who has crafted a highly responsible budget to meet the needs and address taxpayers' concerns regarding taxation; that government is. being invented and reinvented; that the effort is to make government work smarter and more efficiently and to maintain the same levels of service with diminished funds; that the desire was to add a number of positions; however, adding positions was not possible given the current restraints; that instead, the route of smarter and more efficient government will be taken; that nothing is more important than public safety to the Commission and the constituency; that the needs will be addressed in other ways than hiring staff; that everyone wishes to assure the level of service will be maintained; that the Police Chief is requested to monitor the level of service closely and report back should concerns develop; that his commitment is to closely monitor the level of service; that the use of TIF Funds has been discussed in the past; that clarification of the possible uses of TIF Funds has been BOOK 54 Page 26120 09/03/03 6:00 P.M. BOOK 54 Page 26121 09/03/03 6:00 P.M. requested several times, which should be easily forthcoming from the Community Redevelopment Agency (CRA) legal counsel; that the City has a 16 percent reserve for FY 2003/04, which is highly fiscally responsible; that pension and health insurance costs have increased significantly; that reducing the reserve further would be irresponsible; that the FY 2003/04 budget as presented by the City Manager and as approved by the Commission is responsible; that the FY 2003/04 budget will be closely monitored to assure levels of service are maintained. Vice Mayor Martin called for a vote on the motion and requested that City Auditor and Clerk Robinson proceed with the roll-call vote. Motion carried unanimously (4 to 0): Atkins, yes; Bilyeu, yes; Martin, yes; Servian, yes. 2. CITIZENS I INPUT CONCERNING CITY TOPICS (AGENDA ITEM II) CD 7:08 There was no one signed up to speak. 3. OTHER MATTERS/ADMINISTRATIVE OFFICERS FINANCE DIRECTOR WILL BRING BACK A REPORT CONCERNING A POSSIBLE EXTENSION OF THE HOMESTEAD EXEMPTION BASED ON A $5,000 CALCULATION (AGENDA ITEM III) CD 7:08 through 7:16 COMMISSIONER SERVIAN: A. asked if a date has been established for a joint meeting with the Sarasota Board of County Commissioners concerning the Sarasota County Area Transit (SCAT) transfer facility? City Auditor and Clerk Robinson stated that a response is anticipated from the County on September 4, 2003. COMMISSIONER BILYEU: A. stated that a citizen previously spoke to the Commission concerning the homestead exemption and the possibility of the City's extending an additional exemption to City property owners over age 65 who earn less than $20,000 E annually; that the suggestion was discussed with the City Manager who indicated the possibility will be explored. Gibson Mitchell, Director of Finance, came before the Commission and stated that the Commission would be required to adopt an ordinance to implement the tax exemption for low-income seniors; that the Property Appraiser recently mailed the Truth In Millage Bill (TRIM) notice and included a newsletter with the mailing, which provided information concerning filing for the tax exemption in the County; that the individual requesting the tax exemption must file an application with the Property Appraiser and prove income level to qualifyi however, the City must first adopt an ordinance allowing the exemption and the amount of the exemption; that Longboat Key recently implemented an exemption of $25,000; that the exemption provided by the County is $5,000. Vice Mayor Martin stated that City property owners can qualify for the County exemption. Mr. Mitchell stated that is correct. Commissioner Servian asked the potential reduction in tax revenue to the City? Mr. Mitchell stated that the Property Appraiser can be contacted to determine the number of City residents who have qualified for the County exemption and provide a calculation of the reduction in City tax revenue if the exemption is adopted. Commissioner Servian stated that information concerning the impact on tax revenue would be required prior to considering an ordinance, especially considering the current budget situation. Commissioner Atkins stated that the tax exemption probably should not be considered in fiscal year 2003/04. Commissioner Servian agreed but stated that knowing the fiscal impact would be helpful. Mr. Mitchell stated that the fiscal impact will likely be small. Commissioner Atkins stated that considerable time is available prior to making any decision. Commissioner Bilyeu stated that the tax exemption only applies to property owners over age 65 who earn less than $20,000 annually; that the only concern is to let the citizen who presented the suggestion know the possibility is being investigated and a report will be provided the Commission; that BOOK 54 Page 26122 09/03/03 6:00 P.M. BOOK 54 Page 26123 09/03/03 6:00 P.M. an application must be made to qualify for the extra tax exemption. Mr. Mitchell stated that is correct; that a property owner must qualify for the taxable year subsequent to making application; that the : application deadline for the tax exemption is not known; however, the Commission must first adopt an ordinance implementing the tax exemption; that the Property Appraiser will be contacted to determine the value of the property of the City property owners who qualified for the County exemption sO the fiscal impact can be calculated; that the tax exemption only applies to $5,000 in property value in the County; that the City could determine any amount for the tax exemption up to $25,000; that the tax impact should be minimal. Commissioner Bilyeu asked if Staff will return with additional information? Mr. Mitchell stated yes. City Auditor and Clerk Robinson asked if Commission consensus exists for the Finance Director to bring back a report based on the calculation of a $5,000 exemption? Vice Mayor Martin stated that hearing the Commission's agreement, the Finance Director should bring back a report concerning a possible extension of the homestead exemption based on a $5,000 calculation. Mr. Mitchell stated that a report will be provided indicating the value of the property within the City which has already met the requirements to qualify for the County's tax exemption. Commissioner Atkins stated that the likelihood City property owners may decide to apply if the exemption is $10,000 rather than $5,000 should be considered; that a calculation of the potential rather than the actual tax impact is preferred. Vice Mayor Martin stated that the demographics to perform such a calculation may not be available. Mr. Mitchell stated that the availability of the demographics is not known; however, Staff may be able to provide some estimate of the demographics. Commissioner Atkins stated that the demographics should be available from the census. Commissioner Bilyeu stated that calls have been received from owners of rental property in Laurel Park about significant increases in assessed value; that some increases were as high as 80 percent; and asked if any advance information was received from the Property Appraiser concerning areas of significant increases in value for non Owner-occupied property? Mr. Mitchell stated no; that no detail is received from the Property Appraiser's Office; that the actual assessed value of the property will be received after mid October 2003; that the information is updated quarterly; that currently, the City only has a number for the total value of property in the City. 4. ADJOURN (AGENDA ITEM IV) CD 7:16 There being no further business, Vice Mayor Martin adjourned the Special meeting of September 3, 2003, at 7:16 p.m. r - Bechare dlartir RICHARD F. MARTIN, VICE MAYOR ATTEST: Bilki E obenoer BILLY E. ROBINSON; CITY AUDITOR AND CLERK BOOK 54 Page 26124 09/03/03 6:00 P.M.