City Commission Workshop Meeting

Commission Workshop Meeting Minutes April 9, 2025 (APPROVED) 4/9/2025 - Minutes 1. CALL TO ORDER & ROLL CALL Commission Members Present: Mayor Jack Hilligoss, Robin Gibson, Daniel Williams, Keith Thompson, Carol Gillespie Staff Members: James Slaton, City Manager; Jennifer Nanek, City Clerk; Albert C Galloway, Jr., Mayor Hilligoss called the meeting to order at approximately 2:00 p.m. 2. City Manager Comments 3. Transmittal Of Annual Comprehensive Financial Reports, For Fiscal Year Ended September 30, 2024 [Begin Agenda Memo] SYNOPSIS: Transmittal of Annual Comprehensive Financial Reports for fiscal year ended September 30, 2024. STAFF RECOMMENDATION: Staff recommends the City Commission accept the Annual Comprehensive Financial Report for fiscal year ended September 30, 2024 and independent auditors’ report as presented. BACKGROUND: In the independent auditors’ report for the fiscal year ending September 30, 2024, the auditors (Carr, Riggs & Ingram) stated that, in their opinion, the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of September 30, 2024, and the respective changes in financial position, and cash flows where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The City utilized the professional services of Mike Brynjulfson, CPA for compilation of the annual audit. Mr. Brynjulfson will be attending the presentation of the annual report and be available to answer any questions relating to technical reporting requirements. Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $78,946,237 (net position). As of September 30, 2024, the City reports an unrestricted net position of $5,652,298, as compared to $3,673,127 in the prior year. • The City’s total net position increased by $8,973,595 during the current year compared to an increase of $4,213,082 in the prior year. The governmental activities and business-type activities increased their net position by 20% (8% in prior year) and 8% (6% in prior year), respectively.  resources at the close of the most recent fiscal year by $78,946,237 (net position). As of September 30, 2024, the City reports an unrestricted net position of $5,652,298, as compared to $3,673,127 in the prior year. • The City’s total net position increased by $8,973,595 during the current year compared to an increase of $4,213,082 in the prior year. The governmental activities and business-type activities increased their net position by 20% (8% in prior year) and 8% (6% in prior year), respectively. • As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $20,572,822; a decrease of $3,576,593 for the year. Approximately 28% of total fund balance is available for spending at the government’s discretion (unassigned) compared to 14% in the prior year. • A restatement of previously reported net position and fund balance was made due to a change in the reporting entity as the financial reporting of the library district (a dependent special district) was reexamined during 2024 and moved the reporting of this district from the blending method to a discretely presented component unit. [End Agenda Memo] Dorothy Abbott, Finance Director, reported on the audit for the fiscal year ending September 2024. She highlighted that the audit was completed two months ahead of schedule and resulted in no findings or comments from the auditors, indicating a very positive financial assessment. She emphasized the city's strong financial position, noting that general fund reserves stand at 28%, significantly exceeding the recommended threshold of 15-20%. She also let it be known that the auditors will formally present the audit at the next commission meeting, where they will elaborate on the reserve increases and address any questions. Ms. Abbott commended Vanessa Avellaneda, Assistant Finance Director, for her hard work on getting this done. 4. Raising The Threshold To $5,000 For Capitalization Of Fixed Assets [Begin Agenda Memo] SYNOPSIS: Staff is requesting that the threshold for capitalization of fixed assets be moved from $1,000 to $5,000, with an effective date of 10/01/2024. This change would align with common financial reporting standards and reduce administrative burden by limiting the number of items capitalized as fixed assets for accounting purposes. STAFF RECOMMENDATION: 1. The City Commission approve the new Procedure Manual for Capital Assets, with an effective date of October 1, 2024. BACKGROUND: The city last updated its Procedure Manual for Capital Assets in October 2010. Florida Statute 274.02(1) requires local governments to maintain records of tangible personal property valued over $1,000, but assets are typically capitalized at a $5,000 threshold for financial reporting. Raising the capitalization threshold to $5,000 would reduce the administrative burden of tracking low-value items as capital assets, aligning with common practices among local governments. FISCAL IMPACT: No Fiscal Impact [End Agenda Memo] Dorothy Abbott, Finance Director, explained that the staff is requesting to raise the city's capitalization threshold for fixed assets from $1,000 to $5,000. This change, which is more aligned with state practices and those of other cities, would reduce the administrative burden of tracking low-value items as capital assets. She characterized the request as a housekeeping matter. Deputy Mayor Gibson inquired about the categorization of assets valued below $5,000, given the proposed increase in the capitalization threshold. Ms. Abbott clarified that these items would be classified as operating expenses in the year they are incurred. 5. Presentation - EDC/Chamber Of Commerce Skip Alford, President and CEO of the Lake Wales Area Chamber of Commerce and Economic  increase in the capitalization threshold. Ms. Abbott clarified that these items would be classified as operating expenses in the year they are incurred. 5. Presentation - EDC/Chamber Of Commerce Skip Alford, President and CEO of the Lake Wales Area Chamber of Commerce and Economic Development Council, provided the Commission with a first-quarter report focusing on economic development leads and the city's overall economic health. Key takeaways include: l Business Leads: ¡ Alford highlighted the types of businesses showing interest in Lake Wales, noting a growing trend towards "build-to-suit" projects rather than just existing structures. ¡ He emphasized the need for increased industrial infrastructure to attract larger investments, including a potential billion-dollar project. ¡ He spoke on the need to pursue projects that are outside of what the initial requests are, in order to get the companies to look at Lake Wales. l Economic Climate: ¡ He presented data on median salaries, unemployment rates, and poverty rates, emphasizing the need to improve per capita income to enhance the city's economic vitality. ¡ He explained the importance of increasing per capita income to improve the overall economic well-being of the city, and to enable funding for future economic development. ¡ He outlined plans to improve these metrics through various initiatives and collaborations. l Community Development: ¡ He discussed the Youth Leadership Lake Wales program and plans to expand it in collaboration with local universities. ¡ He mentioned his involvement with the Main Street board's selection of a new executive director, and interviews regarding downtown development. ¡ He also mentioned that there are ideas in the work for new development for the city, that he will disclose when the people involved are ready. l Overall Goal: ¡ He reiterated the Chamber and EDC's commitment to attracting investment, creating quality jobs, and preparing Lake Wales for future growth, emphasizing the importance of aligning with the city's "garden in the city" vision. ¡ He stressed that they will continue to build momentum towards economic improvements for the city of Lake Wales. In essence, Alford's report conveyed optimism about Lake Wales' economic potential, while also highlighting the challenges that need to be addressed to achieve sustainable growth. Commissioner Gillespie asked what the metric for "jobs retained" means? Mr. Alford explained that business is interested in expanding and those are the jobs that would be retained by the project. 6. The Lake Wales Housing Authority, Owner, Is Requesting Approval Of City Commission For A Special Exception Use Permit To Allow A Multi-Family PDP, Including A Multi-Phased Master Plan, On 24.74 Acres Of Land, For The Redevelopment Of Grove Manor. [Begin Agenda Memo] SYNOPSIS: The Lake Wales Housing Authority, owner, is requesting approval of City Commission for a Special Exception Use Permit to allow a Multi-Family PDP, including a multi-phased Master Plan, on 24.74 acres of land, for the redevelopment of Grove Manor. RECOMMENDATION: Staff recommends approval to City Commission for the Special Exception Use Permit for a Planned Development Project (PDP), including a multi-phased Master Plan, finding that the zoning and land use designations support the proposed redevelopment project, and that approval of the PDP will not have a negative impact on the surrounding area. At the March 25, 2025 meeting, the Planning and Zoning Board made a 4-3 recommendation of approval to City Commission, after lengthy deliberation of the sufficiency of parking proposed to serve the new neighborhood. RECOMMENDATION: Staff recommends approval to City Commission for the Special Exception Use Permit for a Planned Development Project (PDP), including a multi-phased Master Plan, finding that the zoning and land use designations support the proposed redevelopment project, and that approval of the PDP will not have a negative impact on the surrounding area. At the March 25, 2025 meeting, the Planning and Zoning Board made a 4-3 recommendation of approval to City Commission, after lengthy deliberation of the sufficiency of parking proposed to serve the new neighborhood. BACKGROUND: History: The subject property is an existing affordable housing community located on Sessoms Avenue with 69 single-story residential buildings and associated parking on site. The Master Phasing Plan contemplates the redevelopment of housing units on site within four phases. Future Land Use: MDR Medium Density Residential Zoning: R-3 Residential Redevelopment Plan The Housing Authority proposes to redevelop the property over four phases, to include affordable housing units, a clubhouse, and parking. Beginning with Phase II as shown on the attached site plan, 4 apartment buildings (78 total units) are proposed, along with associated parking and the club house. The club house will include a leasing office, fitness center, community room with kitchen, and an outdoor plaza. Phases 2 and 3 may include a variety of housing types, and Phase 4 is to be transferred to the City for a future project. The Housing Authority designed the layout of the apartment buildings with a close building-to-street relationship, in coordination with town planning firm Dover, Kohl, and Partners, creating an attractive, walkable streetscape and neighborhood feel. Parking While considering a recommendation to City Commission, the Planning and Zoning Board discussed the sufficiency of the parking designed to serve the neighborhood, with 3 Board members finding it insufficient. Table 23-306b requires multi-family to provide a minimum of 1.5 spaces per dwelling unit for multi-family; at the time of the Planning and Zoning Board hearing, approximately 1.44 spaces per unit were proposed for Phase 2, including designated on-street parking. Following the Planning Board meeting, the applicant provided a revised parking plan, as shown on the Architectural Site Plan, reflecting a provision of 1.5 spaces per dwelling unit. The Lake Wales Housing Authority is conducting a tenant survey to determine if the 1.5 spaces per unit may be necessary based on current parking needs. Should the LWHA determine the site may become over-parked, they have requested the option to request a waiver from the Administrative Official of up to 20% of the required parking requirement, should the tenant survey and projected transportation needs indicate that a reduction in parking is warranted. Landscaping and Buffering General A detailed landscaping plan with a planting schedule compliant with Section 23-307 shall be reviewed and approved by City Staff and the City’s Horticulturist. Density The maximum number of dwelling units allowed within the MDR Medium Density Residential future land use category at 12 units per acre is 296; 308 dwelling units are proposed. Pursuant to Policy I.1.2.13 Medium Density Residential of the City’s Comprehensive Plan, a density bonus of up to 33% may be granted for an affordable housing development meeting current federal criteria for affordability in Polk County, provided that the development is located in a multi-family zoning district, has in excess of 12 units, and provided the requirements for open space, recreation, buffers, pervious area and parking are not reduced. This brings the max density allowance to 15.96 units per acre, or 394 units. Designating housing as affordable is based off of the income of those living in the home, compared to the area median income. Extremely Low-Income: Household earns at or below 30% of area median income. Very Low-Income: Household earns at or below 50% of area median income. Low-Income: Household earns at or below 80% of area median income. Comprehensive Plan Future Land Use Element: MDR Medium Density Residential The primary function of the Medium Density Residential (MDR) classification is to provide areas for housing in compatible groupings at a density of up to 12 units per gross acre. A density bonus of up to 33% may be granted for an affordable housing development meeting current federal criteria for affordability in Polk County, provided that the development is located in a multi-family zoning district, has in excess of 12 units, and provided the requirements for open space, recreation, buffers, pervious area and parking are not reduced. The MDR classification is intended to preserve the character of existing single-family residential areas and to allow the continued development of these areas. It is also intended to encourage redevelopment of declining residential areas and to allow a variety of housing types on vacant lands within a half-mile of commercial areas and arterial highways. Location criteria: The MDR designation is appropriate for lands within a half groupings at a density of up to 12 units per gross acre. A density bonus of up to 33% may be granted for an affordable housing development meeting current federal criteria for affordability in Polk County, provided that the development is located in a multi-family zoning district, has in excess of 12 units, and provided the requirements for open space, recreation, buffers, pervious area and parking are not reduced. The MDR classification is intended to preserve the character of existing single-family residential areas and to allow the continued development of these areas. It is also intended to encourage redevelopment of declining residential areas and to allow a variety of housing types on vacant lands within a half-mile of commercial areas and arterial highways. Location criteria: The MDR designation is appropriate for lands within a half mile of arterial roadways and CACs-Community Activity Centers and RACsRegional Activity Centers. MDR should also be assigned to existing residential areas with densities greater than 5 and up to 12 units per acre on average. Typical uses: Housing up to 12 units per gross acre. Single-family houses. Two and three- family units, townhomes, and multi-family units may be allowed depending on compatibility with adjoining residential areas, the development suitability of the site, and the availability of public facilities and services. Clustering of units is encouraged to preserve open space and natural resources. Uses that are customarily found in residential neighborhoods and compatible with residential development, such as religious, educational, public facility uses, and assisted living facilities with a maximum FAR of .40. Zoning District Classifications R-3 Residential district. This district is designed for designation of developed multi-family neighborhoods and to permit higher density residential development, consisting of single-family, two-family and multiple-family dwellings, on infill lots in multi-family neighborhoods. It is not intended for use on large tracts of vacant land. The R-3 zoning designation is intended for infill development on lands classified as HDR - High Density Residential on the future land use map of the Comprehensive Plan. Staff Findings: 1. The site is located within the City’s utility service area and will maximize existing infrastructure investments by connecting to municipal water and sewer. 2. The project is an affordable housing development and qualifies for a 33% density bonus pursuant to the Future Land Use element of the Comprehensive Plan. 3. Multi-family projects in excess of 12 units requires a Special Exception Use Permit for a PDP. Although the Grove Manor project is a redevelopment effort, the increase in the number of dwelling units from the current intensity of 138 units, to a proposed 312 units, is considered an expansion of a Special Exception Use Permit. Pursuant to Section 23-216, a new Permit is required. 4. The City’s Residential PDP guidelines are tailored to single-family residential neighborhoods; therefore, the Grove Manor PDP is evaluated according to Section 23-444 Commercial PDPs. 5. Approval of the multi-family PDP will not have a negative impact on the surrounding area. 6. The project is located within a Community Redevelopment Area; both the redevelopment of blight buildings and properties and the addition of affordable housing opportunities are efforts consistent with the Community Redevelopment Agency’s plan. CONDITIONS OF APPROVAL: 1. A detailed Landscaping Plan and Landscaping Schedule shall be submitted to the City for review and approval concurrent with the review of site construction plans for Phase II (Site Development Permit review). 2. Future Phases may be Administratively approved, so long as the design is consistent with the Master Plan and Architectural Site Plan, and the overall density does not exceed the 308 dwelling units. 3. Should the Lake Wales Housing Authority request a reduction in parking spaces, a summary of the tenant transportation survey shall be provided to the Administrative Official to support the request. Parking reduction request may not exceed 20% of the standard. OTHER OPTIONS Deny the request to allow the Multi-Family PDP, stating a finding of fact. FISCAL IMPACT Approval of the Special Exception Use Permit would allow for the redevelopment of Grove Manor and the potential increase in property value. [End Agenda Memo]  OTHER OPTIONS Deny the request to allow the Multi-Family PDP, stating a finding of fact. FISCAL IMPACT Approval of the Special Exception Use Permit would allow for the redevelopment of Grove Manor and the potential increase in property value. [End Agenda Memo] Autumn Cochella, Growth Management, reviewed this item. Commissioner Gillespie asked about the Lake Wales Housing Authority, inquiring about its membership and to whom it reports. Ms. Cochella responded that Albert Kirkland heads the authority, and is independent status from the City of Lake Wales. James Slaton, City Manager, asked Mr. Kirkland who they report to. Albert Kirkland, Jr., Executive Director, said that the authority is accountable to the U.S. Department of Housing and Urban Development (HUD) and operates under HUD regulations. Board members are appointed by the Mayor. Commissioner Gillespie asked when these appointments occur? City Clerk Jennifer Nanek said that upcoming appointments to the Housing Authority board were imminent. Commissioner Gillespie raised concerns about the current residents of Grove Manor and their housing situation during the redevelopment. Mr. Kirkland explained that 42 residents will need to be relocated during the four-year construction period. The Lake Wales Housing Authority plans to provide these residents with housing choice vouchers, encouraging them to stay within Lake Wales if possible, though they have the option to move elsewhere. Kirkland also shared past experience from the Sunrise Park redevelopment, where most displaced residents chose not to return after the project's completion, often finding suitable alternative housing. He emphasized that residents will have a choice regarding their return. Commissioner Thompson inquired about the construction date of Grove Manor, to which Mr. Kirkland replied that it was built in 1972. Deputy Mayor Gibson then clarified that the current approval was specifically for Phase 2 of the redevelopment project. He also expressed hope, though without guarantees, that the remaining phases would proceed, as is the typical practice once a project gains initial approval. Rick Crogan, the development partner with the Housing Authority, provided an update on the funding situation for Phase 3. He explained that the Florida Housing funding cycle was still being finalized and that Polk County's recent reclassification as a "large county" would impact funding allocation. While this change presented some uncertainties, it also offered the potential for less competition for funding. Mr. Crogan also expressed concerns about potential increases in construction costs due to tariffs on Canadian lumber, which could affect the overall project budget and timeline. 7. ORDINANCE 2025-03 Charter Amendment Run-Off Elections – 1st Reading [Begin Agenda Memo] SYNOPSIS ORDINANCE 2025-03 modifies the charter to include run-off elections as approved by the voters on April 1, 2025 RECOMMENDATION Approve ORDINANCE 2025-03 after 1st reading and Public hearing. BACKGROUND In 2007 the City Commission passed Ordinance 2007-01 to put the issue of removing run- off elections on the ballot. These charter amendments were approved by the voters in April of 2007. Ordinance 2024-12, adopted in May of 2024, put a Charter Amendment on the April 1, 2025 Municipal Election ballot to include run-off elections in the future. The Charter Amendment was approved by voters. Ordinance 2025-03 would amend the charter as approved by voters. The first run-off election could happen in 2026. The schedule would be as follows  Ordinance 2025-03 would amend the charter as approved by voters. The first run-off election could happen in 2026. The schedule would be as follows Tuesday April 7th would be the Election for Seats 3 & 5 (Thompson & Gibson) Tuesday May 5th would be the Run-off election if needed. Wednesday May 6th Commission Meeting would be the swearing in of winners of the April 7th Election June 2nd would be the swearing in of the winner of the run-off election if needed as the charter says that “shall take office at the first regular meeting in the month following their election”. OTHER OPTIONS Do not approve Ordinance 2025-03 or recommend changes. FISCAL IMPACT The 2025-2026 election budget will need to be increased about $5000 [End Agenda Memo] Jennifer Nanek, City Clerk, reviewed this item. 8. CITY COMMISSION AND MAYOR COMMENTS Commissioner Gillespie congratulated the Finance Department on their audit results and then inquired about the timeline for the Grove Manor redevelopment, specifically when construction would begin. City Manager Slaton confirmed that the first phase of construction was expected to start in July. Commissioner Gillespie then asked Deputy Mayor Gibson about his promised proposal to limit dark PAC money in municipal elections. Deputy Mayor Gibson clarified that due to the next election being a year away, there was no rush, but that he was actively researching possible solutions and would present his findings to the commission. He also acknowledged the challenge posed by the Citizens United ruling, which equates political contributions with free speech, and expressed his intent to find a way to work around it. Commissioner Williams reported on a phone call from a citizen about Legacy Housing. The citizen commended Darrell Starling for working with them and Commissioner Williams said they worked everything out for this upcoming house. Commissioner Williams reported that he is the Commission representative to the Housing Authority and will keep the Commission informed of any updates. Commissioner Williams said he is excited about attending his first Wine Downtown Thursday. Commissioner Williams commended Walter Clayton, Jr. for winning Player of the Year as relates to the NCAA championship and the Florida Gators. He recommended recognizing him and his achievement. Commissioner Thompson agreed and commended this achievement. Commissioner Thompson reported on his attendance at the Polk County Water School, highlighting a presentation by Brooke Moffis from the University of Florida IFAS Extension. He was particularly impressed by the information on soil amendment and composting, which reportedly can reduce irrigation needs by up to 79%. Thompson expressed interest in exploring the city's current landscaping practices and how they could be improved to conserve water, especially in new developments. He noted that the city is already ahead of the curve in terms of water capture technology in downtown. He emphasized the significant impact of irrigation on water usage in developments and suggested further discussion on implementing soil amendment and composting strategies to conserve water. He mentioned he would attend the Water School again and potentially have more information to share. Deputy Mayor Gibson reiterated his commitment to two key projects as the city enters its budget season. He emphasized the importance of implementing a "clean campaign" initiative to address the influence of dark PAC money in local elections. Secondly, he stressed the need for community redevelopment in the "original town" area, encompassing the historic residential neighborhoods between Lakeshore to Scenic and Polk Avenue to Crystal Lake. He highlighted the area's historic significance, its current state of deterioration, and the city's successful redevelopment efforts in other neighborhoods, such as the Northwest  Deputy Mayor Gibson reiterated his commitment to two key projects as the city enters its budget season. He emphasized the importance of implementing a "clean campaign" initiative to address the influence of dark PAC money in local elections. Secondly, he stressed the need for community redevelopment in the "original town" area, encompassing the historic residential neighborhoods between Lakeshore to Scenic and Polk Avenue to Crystal Lake. He highlighted the area's historic significance, its current state of deterioration, and the city's successful redevelopment efforts in other neighborhoods, such as the Northwest neighborhood and Grove Manor. He stated his intention to advocate for significant budget allocation towards the redevelopment of the original town, primarily through the Community Redevelopment Agency (CRA). 9. ADJOURN The meeting was adjourned at 2:50 p.m. _____________________ Mayor ATTEST: ____________________ City Clerk