Special City Commission Meeting

City of Deltona 2345 Providence Blvd. Deltona, FL 32725 Minutes Special City Commission Meeting Monday, June 28, 2021 5:30 PM Deltona Commission Chambers REVISED 06/25/2021 (2nd Revision) A. In an effort to reduce the possibility of exposure of residents to the COVID-19 (Coronavirus) we have limited public seating inside the Commission Chambers and are practicing social distancing with the City Commission, staff and residents. 1. CALL TO ORDER: The meeting was called to order at 5:30 p.m. by Mayor Herzberg. 2. ROLL CALL – CITY CLERK: Present: 9 - Mayor Herzberg Vice Mayor Bradford Commissioner Avila-Vazquez Commissioner King Commissioner McCool Commissioner Ramos Commissioner Sosa Acting City Manager City Attorney 3. PLEDGE TO THE FLAG: Mayor Herzberg led everyone in the pledge to the flag and Commissioner Avila-Vazquez led everyone in a moment of silence for the families of the Champlain South Towers in Surfside, Florida which collapsed. 4. BUSINESS: A. Review the budget in light of Commissioner King's and Commissioner Sosa's request for the Roll-Back Rate and the possibility the Commission will set the maximum mileage rate (7.85) as required by Florida Statue. Mayor Herzberg stated there are basically two items of business on the agenda and she asked the Acting City Manager to address Item 4-B. Acting City Manager Peters stated the Commission will not be dealing with the resolution this evening other than to review it. It has City of Deltona Page 1 Printed on 9/30/2021 Special City Commission Meeting Minutes June 28, 2021 come to his attention that staff has not received the final roll-back rate from the Property Appraiser's Office and until staff has that actual number the City cannot proceed with the resolution. Staff is expecting that number Thursday or Friday of this week so staff will be ready for the July meeting. There are some key components of the resolution that are required by law. Acting City Manager Peters stated with regards to the budget that staff presented to the Commission previously is the same however the basketball court at Firefighter Park is already under construction so that will be removed from the proposed budget and the position in the City Attorney's Office has been eliminated which he believes is in the budget, but he just wanted to confirm that. With regards to the request from Commissioner King and Commissioner Sosa, at the last meeting while there was not a consensus on it staff went ahead and evaluated the budget as to how staff could get to a roll-back number. Basically, there are five (5) items, first use $3 million fund balance to fund capital equipment replacement fund for the year. Note this is an annual cost so if it is supplemented this year then the City will need to find $3 million going forward to make up the difference each year. The second item, in the City Attorney's budget there is $250,000 for litigation which will be removed, however, if the City has litigation that comes up during the year staff will come back to the Commission to take money from undesignated reserves to pay for that specific litigation. Third, the elimination of the $94,000 personnel cost for a Legal Assistant in the City Attorney's Office. Fourth, staff would unfund three of the proposed six Code Enforcement Officers. Fifth, staff would unfund one Special Events Volunteer Coordinator at $60,000 out of the Parks and Recreation budget. This would allow the City to go back to roll-back and be balanced. Back in 2008 the Country, States, Counties and cities went into a recession and the taxable values of property took a significant nosedive. Under Save Our Homes the City is limited for homesteaded property to 3% growth, but there is no limit on how much it can come down. But for the fact that the City increased their ad valorem millage by almost double from 2007 to present the City would be in a really bad financial situation. That is very close to 4 mills that the City increased over time to make up for the deficit that occurred. Right now, the City is at 7.85 mills and the maximum millage that the City can ever charge is 10 mills so the City is within 2.15 mills of the maximum the City can charge. Therefore he is not in favor of going to roll-back at that time with the discussions of a possible recession coming up in the next two to three years because if the City goes to roll-back it will put the City in a position where it will not only be able to put the $3 million capital improvement funds going forward, but the City would need to make up the deficit of however much it goes down. So, to be financially responsible he believes it is prudent for the City to stay at the 7.85 mills in anticipation of the next recession so that the City can absorb the financial impact of that. The money that the City is setting aside from the undesignated reserve was for a onetime expense to encourage more development and more revenue for the City. The Commission, Acting City Manager and staff discussed what 7.85 mills would generate, 7.182 mills being an increase from last year, refinancing bond debt, 2020 actual's and 2021 proposed budget, homestead cap of 3%, 3% growth being sustainable, the proposed cuts and their consequences, needs being identified, personnel needs, removing $3 million from City of Deltona Page 2 Printed on 9/30/2021 Special City Commission Meeting Minutes June 28, 2021 fund balance, the difference between 7.85 mills and 7.182 mills, taxable values, one time expenses and annual costs, and capital improvements. Commissioner McCool left the meeting at 5:45 p.m. and returned at 5:48 p.m. The Commission, Acting City Manager and staff discussed cutting from each department, budget discussions, sustainable 3% growth line, economic bubble, creating additional revenue, new construction growth, anti growth sentiments, residents on payment plans, offering free money or deferment plan, 30% renter population, the last 4 years and expenses increasing including for the City, 10% roll-back, State law regarding reducing the VSO (Volusia Sheriff's Office), programs and unemployment provided during COVID, the difference between a 5% roll-back and a 10% roll-back, statutory requirements regarding reserves, and reserves to absorb a recession. The Commission, Acting City Manager and staff continued to discuss construction costs, how long reserves will last, analysis on upcoming expenses, strategic planning items of significance, the City in 2007 vs. 2021, increases to upcoming projects, new revenues, not hiring personnel and firing them later, COVID funding, enterprise accounts, residents' wants and needs, building the City for the future, not depending on growth, blighted areas, the Commission's priorities, not wanting to raise taxes, the City being stagnant for years, living in a better City, the Mayor's tax bill from 2006 to current, property being devalued 62% in three years, homestead deductions, the market driving rents, stimulus money, self employment, the current state/look of the City and educating residents across the board. Mayor Herzberg asked what the Acting City Manager would like as the next step and Acting City Manager Peters replied the Commission has a copy of Resolution No. 2021-33 which will be brought back to the Commission on July 6th and staff will be recommending a maximum millage rate of 7.85. The key elements of the resolution which are statutorily required is Section 1 - the proposed maximum millage of 7.85 mills, Section 2 - the roll-back rate which is 7.182 mills currently and could change. The required public hearing date is currently set for Thursday, September 9, 2021 because the City cannot have their hearing on the same night as either Volusia County or the Volusia County School Board. From a voting perspective if the proposed rate is more than 10% above roll-back it requires a super majority vote of 5 to 2 vote of the Commission regardless of how many are in attendance. If there is a 100% increase it requires a unanimous vote, however, the City cannot achieve the 100%. Currently the City is 9.33% above the roll-back which would require a normal majority vote of 4 votes. Mayor Herzberg reminded everyone that Monday, July 5th is a holiday and the Regular Commission Meeting will take place on Tuesday, July 6th. Mayor Herzberg opened the public comments. Elbert Bryan, Deltona, spoke about hearing half story, the residents, buying a house, business incentives, half truths, Rhode Island Extension, 10% cuts, and 3% cuts across the City of Deltona Page 3 Printed on 9/30/2021 Special City Commission Meeting Minutes June 28, 2021 board. Mayor Herzberg closed the public comments. B. Public Hearing - Resolution No. 2021-33, Establishing the Tentative Proposed Millage Rate for the levy of ad valorem taxes for FY 2021/2022 - Camille Hooper, Finance Director, (386) 878-8552. Strategic Goal: Fiscal Issues Mayor Herzberg stated this item is tabled to the Regular Commission Meeting on Tuesday, July 6, 2021. C. Request to confirm the rankings of the applicants for Charter Review Committee and appoint the corrected five members and two alternate members - Joyce Raftery, City Clerk (386) 878-8502. Strategic Goal: Internal & External Communications Acting City Manager Peters stated he had a conversation with the City Clerk regarding how to handle votes in the future. Staff will do one of two things, the vote will be conducted early on the agenda, there will be staff present who will audit the vote and the vote will be announced later on the agenda so there is no pressure to get the vote out. The second option is to take the vote and the results will be presented at the next Commission meeting. Staff is asking for affirmation of the corrected vote tally and he asked the City Clerk to announce the members. He stated there is a tie for the two alternates so to break that tie he suggested to throw out the highest and lowest scores to determine Alternate #1 and Alternate #2. Motion by Commissioner Avila-Vazquez, to confirm the following five members of the Charter Review Committee Phyllis Allen, Elbert Bryan, Chris Nabicht, Pat Northey and Donald Philpitt and the following two alternate members Jeffrey Brower and Marisol Ortiz-Morales. Amended motion by Commissioner Avila-Vazquez, seconded by Commissioner Ramos, to confirm the following five members of the Charter Review Committee Phyllis Allen, Elbert Bryan, Chris Nabicht, Pat Northey and Donald Philpitt and the following two alternate members, first alternate member Jeffrey Brower and second alternate member Marisol Ortiz-Morales. The Acting City Manager has the authority to correct scrivener's errors and the like. The amended motion carried by the following vote: City of Deltona Page 4 Printed on 9/30/2021 Special City Commission Meeting Minutes June 28, 2021 For: 7 - Mayor Herzberg, Vice Mayor Bradford, Commissioner Avila-Vazquez, Commissioner King, Commissioner McCool, Commissioner Ramos, and Commissioner Sosa 5. CITY MANAGER COMMENTS: Acting City Manager Peters reminded everyone that the next Regular Commission Meeting is Tuesday, July 6th. The following week there will be a workshop to go over public records and the First Amendment Foundation will be attending via Zoom. This will be an important meeting and there has been a lot of discussion about public records so this is a good opportunity to have an overview and a robust discussion. The following week will be a Regular Commission Meeting and then the fourth Monday of July the Supervisor of Elections Lisa Lewis will come in to talk about the redistricting process which has to be done prior to the next election. Acting City Manager Peters stated normally with a Special Commission Meeting the discussion is limited to items on the agenda, however, he has been made aware by the City Attorney that a Commissioner has a special request with regards to future meetings and she would like to turn his time over to Commissioner McCool. Commissioner McCool stated she would like to revisit this at the next Regular Commission Meeting so she could have time to speak with the Acting City Manager because she is not sure what the ask will be. Commissioner McCool left the meeting at 6:59 p.m. 6. ADJOURNMENT: There being no further business, the meeting adjourned at 6:59 p.m. ______________________________ Heidi K. Herzberg, MAYOR ATTEST: ________________________________ Joyce Raftery, CMC, MMC, CITY CLERK City of Deltona Page 5 Printed on 9/30/2021