CITY COUNCIL SPECIAL BUDGET HEARING-TENTATIVE

City of Palm Coast City Hall 160 Lake Avenue Minutes Palm Coast, FL 32164 www.palmcoastgov.com CITY COUNCIL SPECIAL BUDGET HEARING Mayor David Alfin Vice Mayor Eddie Branquinho Council Member Victor Barbosa Council Member Ed Danko Council Member Nick Klufas Thursday, September 9, 2021 5:30 PM COMMUNITY WING City Staff Denise Bevan, Interim City Manager William Reischmann, City Attorney Virginia A. Smith, City Clerk > Public Participation shall be in accordance with Section 286.0114 Florida Statutes. > Other matters of concern may be discussed as determined by City Council. > If you wish to obtain more information regarding the City Council’s agenda, please contact the City Clerk's Office at 386-986-3713. > In accordance with the Americans with Disabilities Act, persons needing assistance to participate in any of these proceedings should contact the City Clerk at 386-986-3713, at least 48 hours prior to the meeting. > City Council Meetings are streamed live on YouTube at https://www.youtube.com/user/PalmCoastGovTV/live. > All pagers and cell phones are to remain OFF while City Council is in session. A. CALL TO ORDER Mayor Alfin called the meeting to order at 5:30 pm B. PLEDGE OF ALLEGIANCE TO THE FLAG C. ROLL CALL City Clerk Virginia Smith called the roll. All members were present. Mayor Alfin requested Council follow the rules and procedures of Council. D. PRESENTATIONS 1. PRESENTATION OF THE FINAL PROPOSED FISCAL YEAR 2021-2022 BUDGET Ms. Alves and Ms. Ragsdale presented to Council. Council Member Klufas shared disappointment that a phased approach to additional deputies was not considered. Mr. Klufas inquired about the structure of the contract if they have difficulty filling these positions. What does it look like for when they will patrol our streets? Council requested Chief Strobridge provided an overview to the questions. Chief Strobridge stated the class is finishing up and they do not have a problem hiring the new deputies. There is a pool of deputies ready to go. Council Member Klufas requested to know if there are any delays in hardware for the deputies. Chief Strobridge-we have an order for fleet. Council Member Barbosa-What is "Enhanced Service" contract? Chief Strobridge provided an overview. Council Member Barbosa-Do we know the difference of the cost between enhanced and regular? Ans: Ms. Alves-It is in the contract. Mayor Alfin provided a couple of examples of the enhanced level of service the City receives from the contract. Mayor Alfin shared that Fire is equally as important as police; we talked of Citation and the benefits of having an additional fire station, would we realize any savings in this next year? Ans: Chief Forte responded to include details about the timeline and review of such details. Council Member Danko asked what the rollback rate would be. Ms. Alves provided the rollback rate and associated figures. Council Member Barbosa asked how many Sheriff’s Office Deputies are funded at the rollback rate. Ms. Alves stated that all of the rates presented will include the requested 10 additional deputies. Council Member Klufas clarified the rollback rate. Council Member Danko asked how much funds are impacted by the rollback rate. Ans: Ms. Alves-approximately $800,000 shortage. Vice Mayor Branquinh shared that the Mayor of Jersey City, NJ had damage to his City estimated at $35 million, and was informed by a friend that $100 million would not be enough. Vice Mayor Branquinho asked how they will get the money? He responded they do not have it. Vice Mayor Branquinho shared that it is an egregious thing if this Council takes from our reserves and does not agree with using the reserve funds. Council Member Klufas agrees with Vice Mayor Branquinho; we should not be proud to spend our reserves and transfer money to our pavement program. Mayor Alfin-How did we collect money from the state for reimbursement? Ms. Alves-75% of expenditures and up to 90% for Irma. It also depends on the hurricane category type. Hurricane Irma was a huge impact to the entire state, so it was reimbursed at 90%.  Mayor Alfin spoke of setting precedence tackling the fund balances sharing that none of these are predictable; we have kept millage the same for at least 4 years while our expenditures are increasing. Mayor Alfin suggested looking at millage rate in the future as not set in stone. Council Member Barbosa stated that Council needs to find a happy medium here where everybody wins. Council Member Danko shared that in his career as a journalist, he has not seen any problems recovering funds after a natural disaster and he has no problem using funds from the reserves. Vice Mayor Branquinho shared opposition to using the reserves. Council Member Danko stated that if Council did not want to use the reserves, then proposed to make cuts. Council Member Danko stated that he would like to make a motion. Mayor Alfin asked him to hold the motion until Ms. Alves has completed her presentation. Ms. Alves finished the presentation. Council Member Danko stated that if there is no effort to make cuts, and if Council does not wish to use the reserves, then he wished to make a motion to rescind the Regional Racquet Center. Mr. Cote provided an overview to where the funds are coming from for the racquet center. Park Impact Fees, CRA and Capital Projects are the 3 funding sources. Attorney Reischmann requested a cost overview. Council Member Danko withdrew his motion Council Member Klufas shared that he would be comfortable moving forward with the 4.6100 millage rate. Vice Mayor Branquinho would be comfortable with 4.6989. Council Member Barbosa shared support for the rate of 4.6100. Council Member Danko requested the rollback rate. Ms. Alves clarified the millage rate concluding Council statements and requested a recess to provide the correct resolutions for the tentative millage and tentative budget. E. RECESS CITY COUNCIL AND CONVENE SR 100 CORRIDOR CRA BOARD Council recessed at 6:39 pm to convene the SR 100 Corridor CRA.  2. STATE ROAD 100 CORRIDOR COMMUNITY REDEVELOPMENT AGENCY (SR 100 CRA) RESOLUTION 2021-XX ESTABLISHING THE SR 100 CRA TENTATIVE BUDGET FOR FISCAL YEAR 2021-2022 AND AMENDING THE STATE ROAD 100 CRA BUDGET FOR FISCAL YEAR 2020-2021 R20210126 Mr. Reischmann read the title of this item into the record for the SR 100 Corridor CRA Board. Public Comments: There were none. Pass Motion made to approve by Vice Mayor Branquinho and seconded by Council Member Danko Approved - 5 - Mayor David Alfin, Vice Mayor Eddie Branquinho, Council Member Victor Barbosa, Council Member Ed Danko, Council Member Nick Klufas F. ADJOURN SR 100 CORRIDOR CRA BOARD AND RECONVENE CITY COUNCIL Council adjourned the SR 100 CRA Board and reconvened City Council at 6:44 p.m. G. RESOLUTIONS 3. RESOLUTION 2021-XX SETTING THE TENTATIVE MILLAGE RATE FOR FISCAL YEAR 2021-2022 R20210127 Mr. Reischmann read the title into the record. Mayor Alfin read the required language into the record. Public Comments: Prior to comments, Vice Mayor Branquinho clarified that he misspoke and thanked Pierre for bringing it to his attention-the Property Appraiser cannot raise taxes, he increases the values of our homes. Mike Cocciola would not like to see a tax increase, as a senior any increase hurts. Mr. Cocciola also cautioned against taking from reserves and what is determined to cut from the budget. Mr. Cocciola suggested setting priorities before determining any cuts Michael Arnold spoke of millage rate, budget rates, and interest income is far below par so we are not gaining money. We are operating far below par. Consider our money is accurately protected.  Paul Vargo shared that he came here with a different agenda but what Mr. Danko said about the canals, he can relate to. Mr. Vargo shared of difficulty getting a boat off of a lift and has not experienced anything like the Palm Coast canal system. It is not favorable to allot to the pickleball system and nothing to our canals. Vice Mayor Branquinho asked staff is the City is below par, as it related to Mr. Arnold’s comments. Ms. Alves provided an overview to what is required by State Statutes. Council Member Danko- Discussion on how much we are making on our money, what percent? Ms. Alves responded right above 2%. Mayor Alfin read the required language into the record. Council Member Barbosa made a motion for the millage to be 4.6100, which was seconded by Council Member Klufas. Mayor Alfin called for further discussion. Council Member Danko provided additional comments and suggested additional cuts. Council Member Barbosa proposed Chief Forte explain the hiring issue. This is a happy medium where we have to work for something better in the future. Vice Mayor Branquinho shared that he does not agree with the 4.6100 millage rate. Mayor Alfin shared that he will not risk our safety- police and fire define our quality of life. Mayor Alfin called for a roll call vote. Pass Motion made to approve by Council Member Barbosa and seconded by Council Member Klufas Approved - 3 - Mayor David Alfin, Council Member Victor Barbosa, Council Member Nick Klufas Denied - 2 - Vice Mayor Eddie Branquinho, Council Member Ed Danko 4. RESOLUTION 2021-XX ESTABLISHING THE TENTATIVE BUDGET FOR FISCAL YEAR 2021-2022 AND AMENDING THE FISCAL YEAR 2020-2021 BUDGET R20210128 Mr. Reischmann read the title into the record. Mayor Alfin read the required language into the record.  Doug Brown, owner of Cypress Knolls Golf Course, shared a picture of collapsed Matanzas Golf Course and shared that this is what will happen if we do not support amenities. Doug owner of Cypress Knolls Golf Course-what you see is not what you get. Showing a picture of the collapsed Matanzas Golf Course. This is what happens when you do not support your amenities. There are 318 homes directly on the golf course and 372 across the street from the golf course. According to Sam Percovich, if the golf course goes under you will lose approximately $500,000 in taxes. The speaker also briefly discussed the Racquet Center. Michael Arnold spoke about investment percentages, figures, and market returns. Council discussion- Vice Mayor Branquinho met with the gentleman from the Cypress Knolls Golf Course and it was about the drainage. Mayor Alfin read in the required language into the record. Motion by Council Member Klufas, seconded by Council Member Barbosa. Mayor Alfin called for a roll call vote. Mayor Alfin read the required language into the record regarding the final budget hearing. Pass Motion made to approve by Council Member Klufas and seconded by Council Member Barbosa Approved - 3 - Mayor David Alfin, Council Member Victor Barbosa, Council Member Nick Klufas Denied - 2 - Vice Mayor Eddie Branquinho, Council Member Ed Danko H. ADJOURNMENT The meeting was adjourned at 7:15 p.m. Respectfully submitted by: Virginia A. Smith, MMC City Clerk