BOOK 54 Page 25867 07/17/03 2:30 P.M. MINUTES OF THE SPEÇIAL SARASOTA CITY COMMISSION MEETING OF JULY 17, 2003, IMMEDIATELY FOLLOWING THE 2:00 P.M. WORKSHOP PRESENT: Mayor Lou Ann R. Palmer, 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: None PRESIDING: Mayor Palmer The meeting was called to order by Mayor Palmer at 3:50 p.m. 1. APPROVAL RE: : PRELIMINARY MILLAGE LEVY FOR THE CITY OF SARASOTA AND ST. ARMANDS BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR (FY) 2003/04 = APPROVED (AGENDA ITEM I) CD 3:50 through 4:06 Gibson Mitchell, Director of Finance, came before the Commission and stated that Commission approval is sought to authorize the City Manager to sign the Certification of Taxable Value for the Property Appraiser and the Tax Collector establishing the operating millage at 2.6917 mills for fiscal year (FY) 2003/04, which is unchanged from the operating millage of 2.6917 for FY 2002/03; that the certification establishes the debt service millage at 0.4582 mills, which is a 16.00 percent decrease from the current FY 2002/03 debt service millage of 0.5455; that the total millage for the FY 2003/04 is 3.1499 mills, which is a 2.07 percent decrease from the current FY 2002/03 millage of 3.2372 mills and compares as follows: Actual Proposed FY 2002/03 FY 2003/04 Operating Millage 2.6917 mills 2.6917 mills Debt Service 0.5455 mills 0.4582 mills Total 3.2372 mills 3.1499 mills Mr. Mitchell continued that the certification also establishes the millage levy for the St. Armands Business Improvement District (BID) levy; that the Board of Directors for the St. Armands BID has approved a 2.0 mill levy on the property in the St. Armands BID for FY 2003/04, which will yield approximately $190,000 in net ad valorem tax revenue; that the 2.0 mill levy on the property in the St. Armands BID is in addition to the millage rate set for the entire City. Mr. Mitchell referred to a worksheet included in the Agenda backup material indicating the computation of the rolled-back rate for the operating millage for FY 2003/04 as required by the Truth in Millage (TRIM) Act; and stated that the TRIM Act requires the proposed operating millage rate for ad valorem taxes be measured in terms of the rolled-back rate which is the millage rate necessary to yield the same ad valorem tax revenue as generated for FY 2002/03; that the rolled-back rate is 2.3897 mills; that the certified taxable value of the City is $5,578,077,707. Mr. Mitchell continued that the TRIM Act requires that the increase in the rolled-back rate be reported to include all anticipated increases in net ad valorem tax revenue such as the increase resulting from the 2.0 mill levy on property in the St. Armands BID; that the certified taxable value of the property in the St. Armands BID is $99,415,508; 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 BID, is a 14.1273 percent increase from 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 Staff does not support the requirement to use the higher operating millage calculation to report the percentage of increase over the rolled-back rate and discussed the computation at length with the State Department of Revenue; however, the State requires the City use the higher operating millage calculation. City Manager McNees stated that the computation is based on the aggregate millage rate and. is strictly defined in the TRIM Act; that the percentage of increase over the rolled-back rate must be advertised according to the TRIM Act. Mayor Palmer stated that the operating millage will appear differently on the bills for City residents and the St. Armands BID. Mr. Mitchell stated that the operating millage and debt service is being established Citywide; that 2.0 mills is then levied on property in the St. Armands BID. Vice Mayor Martin asked if a parenthetical or asterisked comment can be included in the advertisement to provide an explanation? BOOK 54 Page 25868 07/17/03 6:00 P.M. BOOK 54 Page 25869 07/17/03 2:30 P.M. Mr. Lyons stated that the TRIM Act indicates an explanation is strictly prohibited. City Manager McNees stated that the State Department of Revenue will send a letter indicating the City is not in compliance with the TRIM Act if an explanation is included. Mr. Mitchell stated that the actual operating millage rate is 2.6917; that the higher operating millage of 2.7273 is a calculation to indicate the increase over the rolled-back rate; that the percentage of increase over the rolled-back rate of 2.3897 mills is a 14.1273 percent increase over the operating millage rate of 2.7273 which includes the adjustment for the St. Armands BID; that authorization is requested for the City Manager to sign the Certifications of Taxable Value for the City and the St. Armands BID for the Property Appraiser and the J'ax Collector. On motion of Commissioner Servian and second of Vice Mayor Martin, it was moved to approve the City's preliminary operating millage of 2.6917, the debt service millage of 0.4582, and the millage levy of 2.0 for the St. Armands Business Improvement District for FY 2003/04 as recommended by the Administration and to authorize the City Manager to sign the Certification of Taxable Value for the Property Appraiser and the Tax Collector. Commissioner Bilyeu stated that the decision to freeze ten police officer positions for FY 2003/04 is sad; that the Commission has worked hard for many years to have a good Neighborhood Enforcement Team (NET) and good Community Resource Police Officers; that negative consequences will hopefully not occur. Commissioner Servian stated that FY 2003/04 is a difficult budget time for everyone involved; that all the departments worked as hard as possible to reduce the budget which is pleasing; that the process has been difficult; that the Commission will work hard to maintain costs to avoid difficulties in FY 2004/05; that ten police officers will not be lost but will be reduced through attrition; that police enforcement and public safety is the number one goal of the City; that confidence is held in Police Chief Peter Abbott; that a high level of service to the community will continue; that a degradation in police service is not expected. Vice Mayor Martin stated that the FY 2003/04 budget is responsible; that adopting the FY 2003/04 budget provides a feeling of pride; that other jurisdictions struggled over the past two years due to economic times; that the City was not substantially affected; that the reality of the economic times has come to the Cityi that the Commission would like to fill many of the additionally requested departmental positions as well as the ten police officer positions; that the City Manager and department heads addressed issues raised by the Commission and incorporated policy into the FY 2003/04 budget; that the level of the General Fund Balance at 16 percent is pleasing; that use of reserves from the General Fund Balance is a concern since future years could become increasingly difficult; that FY 2003/04 is a challenging period; that the City will be required to keep the level and quality of service with less; that freezing ten police officer positions is a concern; that Police Chief Abbott is requested to keep the Commission apprised of any deterioration in service sO the issue can be revisited if necessaryi that the FY 2003/04 budget process has been long but good; that he is proud of the Commission and the City for respecting the taxpayers by maintaining rather than increasing the City's operating millage. Commissioner Atkins stated that people sometimes forget they reside in the City of Sarasota; that tears should not be shed for the City since the City is doing sO much better than other municipalities; that he is thankful to reside in the City; that the FY 2003/04 budget is responsible based on the quality of life expected in the City; that the citizens should expect the Commission will look after the best interests of everyone living in the City and will be responsible. Mayor Palmer stated that the comments by fellow Commissioners are respected; however, some concerns regarding the FY 2003/04 budget remain; that approximately $799,000 of the amount being taken from the General Fund Balance is for capital items; however, approximately $751,000 of the amount being taken from the General Fund Balance is not for capital items; that the reserves of the General Fund Balance are intended for use during so-called "rainy days"; that the rain has already begun to fall; that the City could experience a downpour in future years, which is the reason for the concern regarding the use of reserves from the General Fund Balance; that further methods of reducing costs will be necessaryi that the City Manager, the Finance Director, and other City Staff have done an excellent job in preparing the recommended FY 2003/04 budget; however, utilizing funds from the BOOK 54 Page 25870 07/17/03 6:00 P.M. BOOK 54 Page 25871 07/17/03 2:30 P.M. reserves of the General Fund Balance to the extent recommended is not supported and poses a serious philosophical problem. Mayor Palmer continued that the points raised by fellow Commissioners regarding the frozen ten police officer positions are supported; that the hope is Police Chief Abbott will be able to continue the level of service even with the reduction of police officer positions; that Police Chief Abbott has indicated difficulties will be encountered; that the expectation is the level of service may be reduced in the future; that utilizing the General Fund Balance at this time is not supported; that increases in health insurance and pension costs will be greater in FY 2004/05; that the City may be required to reduce the FY 2004/05 budget further; that FY 2004/05 may prove more difficult than FY 2003/04 which is a major concern. Mayor Palmer called for a vote on the motion to approve the City's preliminary operating millage of 2.6917, the debt service millage of 0.4582, and the millage levy of 2.0 for the St. Armands Business Improvement District for FY 2003/04 as recommended by the Administration and to authorize the City Manager to sign the Certification of Taxable Value for the Property Appraiser and the Tax Collector. Motion carried (4 to 1): Atkins, yes; Bilyeu, yes; Martin, yesi Palmer, no; Servian, yes. 2. CITIZENS' INPUT CONCERNING CITY TOPICS (AGENDA ITEM II) CD 4:06 There was no one signed up to speak. 3. ADJOURN (AGENDA ITEM IV) CD 4:06 There being no further business, Vice Mayor Palmer adjourned the Special meeting of July 17, 2002, at 4:06 p.m. Tol ANN R. PALMER, MAYOR - EST,: E Robenss BILLY' E.CROBINSON, CITY AUDITOR AND CLERK