MEMORANDUM

 

 

To:                   Mayor Allen Green

Vice Mayor Mary Martin

Councilman Dennis Kennedy

Councilman Robert Pohlmann

Councilman George Steindoerfer

 

From:              Kenneth W. Parker, City Manager

 

Subject:          Agenda Commentary for Regular City Council Meeting of

                        September 8, 2009

 

Date:               August 31, 2009

 

 

There is a defined process that must be followed.  The City Attorney has put together the process for each agenda item in accordance with State Law. 

 

A.        OPENING

 

Item 1 -           Pledge of Allegiance

Item 2 -           Silent Invocation

Item 3 -           Roll Call

 

 

B.                 PUBLIC HEARING

 

Item 4 -           Discussion of Proposed Millage Rate – FY 09/10

 

The first item is a discussion of the tentative millage rate.  The rollback rate is 5.5356 mills. As the City Council realizes, the roll back rate generates the same amount of revenue as would have been generated in 2008-09 plus any new construction.  The advertised millage rate for the City of Port Orange is 16.9% below the roll back rate.  It is proposed that the City of Port Orange millage be set at 4.6 mills.  This would be the third year the City Council has adopted a millage rate below the roll back rate.  Last year’s rollback rate was 4.80 mills, and the City Council adopted a millage rate of 4.60 mills.  The previous year, the State Legislature required a rollback rate be adopted.  The City Council adopted a millage rate within the guidelines provided by the Department of Revenue to enact the legislation approved by the State Legislature.

 

Item 5 -           Resolution No. 09-65 – Adopting the Tentative Millage Rate for FY 09/10

 

The attached resolution will approve the Tentative Millage Rate for FY09/10.  It is recommended that the City Council adopt a millage rate of 4.60 mills for the General Fund. This amounts to a 16.9% decrease in ad valorem taxes below the rollback rate.   

 

Item 6 -           Resolution No. 09-66 – Adopting the Tentative Operating Budget for FY09/10

 

The attached resolution will approve the Tentative Operating Budget for FY09/10.  The City Council reviewed the entire budget in July, 2009.  On Tuesday, September 1, 2009, a final budget workshop was conducted to review any other potential changes to the operating budget.  The 2009-10 budget is ready for adoption.  Let me point out a few items:

 

  • The City’s revenue estimates for state revenues are below the amount projected by the State of Florida.  We do not have confidence in the State’s revenue estimates.  We may see some slight changes in revenues due to a slight reduction in population over the past 12 months.  At this point in time, we are comfortable with the City’s estimate.   This will need to be watched throughout the year in order to make sure that we keep the budget aligned.
  • There are no salary adjustments included in this operating budget. 
  • There are limited capital expenditures being budgeted this year.
  • There are fewer full time city employees.  This budget contemplates a reduction in the number of full time city employees. 
  • We are still working on contracts with five of the bargaining units.  That means that we will have to address continuation issues with those unions should the negotiations go beyond September 30.  Departments with continuation issues will be required to manage their expenses accordingly since we will not be able to reach into contingencies to fund any continuing contract issues.
  • There will be no health insurance premium increases this year.  That is the assumption that is included in the operating budget.  Our contract for next year comes due in July.  We have seen a flat rate for the past two years.  Our employees have worked extremely hard to keep the rates under control. 
  • Property, Casualty, and Liability Insurance rates will actually be lower than projected giving the City some flexibility should revenues fail to meet our estimates. 
  • The monies budgeted in the Water and Sewer Fund for WAV will not be needed.  Those funds will remain in contingency.
  • In the drainage utility fund, there is no money budgeted for correcting the problem associated with the flooding of Dunlawton.  We will be making an adjustment to the budget as a carryover to fund the design work associated with the overall Halifax, Nova, 11th Street, and Reed Canal Road Project.  That Resolution should be coming forward at the September 15 or 22 City Council Meeting.

 

Item 7 -           Resolution No. 09-67 – Adopting the Tentative Capital Budget for FY09/10

 

The attached resolution will approve the Tentative Capital Budget for FY09/10.  This budget was reviewed by the City Council in August.  The first year of the five year capital improvement plan becomes the budget for the upcoming year.

 

Item 8 -           Resolution No. 09-68 – Adopting the Tentative Millage Rate for FY09/10 for Town Center Community Redevelopment Agency

 

The Town Center CRA Board reviewed the proposed budget for 2009-10.  This is a change in procedure as required by State Law.  This is not an additional tax but rather a simple restatement of the city adopted ad valorem tax. 

 

Item 9 -           Resolution No. 09-69 – Adopting the Tentative Millage Rate for FY09/10 for Eastport Community Redevelopment Agency

 

The Eastport CRA Board reviewed the proposed budget for 2009-10.  This is a change in procedure as required by State Law.  This is not an additional tax but rather a simple reinstatement of the city adopted ad valorem tax.

 

Item 10 -        Resolution No. 09-70 – Adopting the Tentative Operating Budget for FY09/10 for Town Center Community Redevelopment Agency

 

The Town Center CRA Board has approved the operating budget for the Town Center Community Redevelopment Agency.  The adoption of this Resolution incorporates the Town Center Budget into the City’s Operating Budget for the upcoming year.

 

Item 11 -        Resolution No. 09-71 – Adopting the Tentative Operating Budget for FY09/10 for Eastport Community Redevelopment Agency

 

The Eastport CRA Board has approved the operating budget for the Eastport Community Redevelopment Agency.  The adoption of this Resolution incorporates the Eastport CRA Budget into the City’s Operating Budget for the upcoming year.

 

 

 

 

 

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