Special Commission Meeting
PUBLIC HEARING – BUDGET
MINUTES
The Town Commission of the Town of Melbourne
Present were Mayor
Mayor Stacey called the meeting to order and led the entire assembly in the invocation and the Pledge of Allegiance to the Flag.
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The first item on the agenda was the approval of the proposed
Ad Valorem millage rate for Fiscal Year 05-06 municipal budget. The Town Manager read the memo he prepared
regarding the adoption of the millage rate. He indicated that this was the
first of those two public hearings stating that the second would take place on
Motion by Commissioner Price to accept the operating millage rate for Fiscal Year 2005/2006 at 2.866% which is a 9.99% increase over the roll back rate of 2.6060. Second by Commissioner Guglietta.
At this time the floor was open to the public for discussion. There being none, the discussion was brought back to the Commission and the question was called.
The motion was carried with Commissioner Walters voting no.
The Town Manager explained that it is required by the TRIM notice to explain the reason for the increases. He continued stating that the purpose for increases were legislative capitol expenditures, an increase in police pension fund, and increase in capitol expenditures for law enforcement, community crossovers , capitol expenditures for public works, historical structures, increase in health insurance, and compensation adjustment for employees which consist of a 2% COLA for all employees totaling $11,749.00 and if all employees were to receive a 3.5% merit on their anniversary date it would total $11,557.00. He indicated that the specific items mentioned above were on the first page of the budget packet.
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The next item on the agenda was the approval of proposed Ad Valorem debt service
Millage rate for Fiscal Year 2005/2006 municipal budget
Motion by Commissioner Price to approve millage rate for debt service for library at .1778 which is a reduction from .2116 which is the current rate. Second by Vice Mayor Wilson. At this time the Mayor opened this item for Commission discussion.
Commissioner Walters stated that he Commission had discussed earlier leaving millage rate as was and paying off debt and since we have not heard anything back I will vote no.
Vice Mayor Wilson asked that since we were raising taxes 9.99%, but lowering 8% on this one, how does this affect the average citizen. The Town Manager replied stating that the average citizen, if you combine the two will end up paying less than last year. The millage rate goes down on both. This has to do with increase property values, new construction, and the change of ownership.
Commissioner Price stated that property values have increased and there are sales, but the net affect is that most people will be paying less. The Town Manager stated that anyone that paid taxes to the Town of Melbourne Beach last year will see a reduction in the taxes they pay this year.
Vice Mayor Wilson stated that the Town has the opportunity to do things in the town without the citizens seeing the cost. We will pick up 10% more than we received last year.
Commissioner Walters stated that this was a misstatement on Vice Mayor Wilson’s part, the 10% tax increase will generate $80,000.00 and the revenue from fines will be going down $60,000.00 and the raises will cost about $23,000.00 so there will be no extra money for the Ryckman house or anything else. The entire tax increase is going to make up the difference for the lost fine revenue and the salary increase.
Commissioner Price stated that the revenue is an estimate and a conservative one because of the recent problems in collecting the fines and fees. Hopefully with all the good work that the Town Manager and the Chief are doing that estimate will prove to be conservative and put us in a better position.
Mayor Stacey specified that they were discussing the debt service for the library.
Ron Gallagher asked what would be the benefit of keeping the millage rate for the library were it is and paying it off earlier? The Mayor responded was that the idea was that the younger generation should have a share in paying for it. This is something that is up for argument. Mr. Gallagher stated that the younger people should not have to bear the burden they already have enough.
Marty Remark stated that in order to pay it off funds from the reserves would have had to be used, and the Commission at that time decided that all people in Town should have to contribute to this debt.
Commissioner Price believes that this should be approached exactly the way we propose. Although the amounts are small on both sides of the equation, but there are people in the community on fixed incomes. By not increasing the taxes on the library debt service, which we can afford, at the same time take a reduction. On the other hand the millage for the general fund we do not have that flexibility. Costs are rising and so we do need to find dollars for inflation. This is the smartest thing to do at this time given the fact that so many people are on fixed incomes.
The Mayor stated that there are merits on both sides of this issue.
Commissioner Walters stated that he brought this up and it was not a question of increasing the library tax but to keep it the same for the sole purpose of paying off the debt sooner. He continued replying to the statement about the next generation paying stating that the younger generation will have all they can handle paying social security for this generation. He believes that if you can pay it off sooner you should do so.
Commissioner Price commented that the principal about mortgages is that if you borrow for a long term you borrow at today’s values. If you project those values into the future you pay it back at significantly reduced values. Those dollars are worth a fraction of what they are worth now. If you have a long term loan as a municipality it is not in the interest of the municipality to pre pay that loan. It is in the best interest to borrow at 100% value and pay back at a10% value.
Commissioner Guglietta asked the Town Manager if the millage rate can be raised. The Town Manager responded that you can go lower but not higher.
At this time the Mayor called for the question.
The motion was carried with Commissioner Walters voting no.
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The next item on the agenda was the approval of tentative fiscal year 2005/2006 Municipal Budget
The Town Manager stated that the budget document you have reflects the changes made at the past meeting. It also includes a summary of revenue as requested at the last meeting. It was requested that we increase contingency by $30,000.00, the merit increase is included and reflects a 3.5% increase for a total of $11,557.00.
Motion by Commissioner Price for the budget for Fiscal Year 2005/2006 be approved as presented. Second Guglietta.
There were no comments from the public therefore the discussion was brought back to the Commission.
Commissioner Walters stated that he will also be voting no on this. He stated that he asked for Nextel costs, and never received them. He also stated that he asked for training budget never received it. He also asked for the second dollar fund, never got it. He believes that he cannot make a decision without the information. He will be voting no.
The Town Manager stated that there was discussion about what was in second dollar fund. He stated that he thought the commission was provided with that information. He apologized if they were not. He continued stating that there is $8300.00 in that fund that is available for training. What we don't need we won't use.
Vice Mayor Wilson asked if we are putting $80,000.00 in contingency fund. How does that relate to reserve fund. The Town Manager responded that you are budgeting $80,000.00 for contingency. You can use it as you see fit. If you were to need something beyond that you could use the reserve funds. Vice Mayor Wilson stated that that is basically an emergency fund. The Town Manager stated that these funds could be rolled over into the 2007 fiscal year if they are unused or you can put it into your undesignated reserves.
Marty Remark asked about the line item concerning historic
structures. She asked if the funds were
available for any historic structures.
The Town Manager replied that the shifting of funds for one structure or
another is within your authority. The
answer is yes it can be moved. $1,000.00
was set aside for the
Commissioner Price commented that he thinks that the intent was to highlight the priority the Ryckman House. If we do not spend the budgeted amount, then those funds can be used elsewhere.
Commissioner Walters commented that the additional $15,000.00 in overtime from this years projected end is to be spent next year in overtime to train officers 4 hours per month in staffing. This is not for training, it is for overtime.
There being no further comments, the Mayor called for the question.
Motion carried with Commissioner Walters voting no.
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The next item on the agenda was Ordinance 3-2005.
Town Attorney Paul Gougelman read Ordinance 3-2005 by title. He continued stating that this ordinance has been revised several times, the text for the new charter language
needs to be underlined, beginning on page 2 starting on lines 21 through 25 and then on page 3 lines 1 through 7.
At this time, the Commission took a 5 minute recess.
The meeting reconvened and the Town Attorney made scrivener corrections to Ordinance 3-2005. He continued stating that on Page 3 lines 22 after the number 28 insert the word feet. Then on page 5 line 4 the date should be 24th day of August and on line 6 the date should be the 7th day of September.
Motion by Vice Mayor Wilson to approve Ordinance 3-2005 with corrections. Second by Commissioner Guglietta for discussion only.
Commissioner Walters – asked the Town Attorney about the language stating that the height shall be calculated using the definition set forth in Ordinance 2004-01. He asked if that could be changed later on. The Town Attorney responded that it would be as set forth in 2004-01. The problem is that is states that 28 feet applies to all zoning districts, it needs to be amended. Commissioner Walters then asked that if that can be amended why can’t the height be amended. The Attorney responded that the key language is that the height shall be calculated using the definition as set forth in Ordinance 2004-01.
Commissioner Guglietta asked for clarification regarding the zoning districts. He stated that the height for the Breakers is currently 35 feet which is currently over 28 feet. The point is, if there at 35 feet now and everything has to be at 28 feet as a residential area, then we have a problem. How are we going to handle that discrepancy? Can we grandfather those people in? The Mayor responded that it is a problem because if a storm came through and knocked everything down they cannot rebuild. Commissioner Guglietta stated that if this ordinance goes through, it is at 28 feet and if the building is destroyed then they can only rebuild to only 28 feet. Commissioner Price commented that the people on the top floor would have to relocate. Commissioner Walters stated that all this does is allows the people to decide. If we have a catastrophic hurricane, I am sure the people will decide to build what they had before. It will go back on referendum and the people will by majority vote decide what you can build and what we can't. Commissioner Price replied stating that you have a small minority of people that will be adversely affected. These people will have their property gone. Without this being in the Charter, if this situation arose then planning and zoning and the Commissions can resolve the problem. If we put it in the charter we would have to have a referendum. That is why it does not belong in the Charter and I will vote to approve this. We have an ordinance in place I think this is overkill. I believe we will live to regret putting this in the Charter.
Mayor Stacey stated that the problem is that if it blows down tomorrow the people will have to wait for a referendum possibly a year to rebuild. Although I am going to vote for it that is the problem.
Commissioner Walters commented that you can have an emergency election in less than 2 months.
Commissioner Guglietta asked if we leave 5RMO in there we have to hope we won't go through any major changes in the next fifteen or twenty years.
Ron Gallagher asked how the Breakers got to 35 feet in the first place?
Marty Remark responded that there were no requirements at that time.
Commissioner Price stated that if the building was substantially destroyed it must be rebuilt in accordance with the new code.
Commissioner Guglietta stated that if you have substantial loss you have to build to the new code. If the loss is not substantial you may rebuild to what previously existed but you do not have to pay the impact fees.
Susan Dieterlie commented there are other parts of the ordinance that state how you can reconstruct non-conforming structures. This not only addresses hurricanes is also affects damage due to fire, wind, wiring, and any damage other than catastrophic damage. All non-confirming structures have their own rules regarding reconstruction.
Vice Mayor Wilson believes that the height limit in 5RMO is 28 feet. Ms. Remark stated that she had a question regarding the Charter amendment regarding 2004-01. I think that this is fine, but not for all zoning areas. Vice Mayor Wilson stated that they were talking about all residential zones. Ms. Remark continued stating that she believes that Ordinance 2004-01 needs to be revisited. Town Attorney Gougelman stated that the code in 1990 said 28 feet is the height in 5 RMO. It was changed in January.
Commissioner Price stated that the code functioned in a town where if a problem arose you had the opportunity to go to Planning and Zoning. What we are doing is erasing that opportunity. Vice Mayor Wilson stated that Planning and Zoning agreed with Ordinance 2004-01.
Jean Marshall stated that she has confidence in the citizens to know what they are voting for. The reason this is here is because people are taking advantage of situations and buying their way to higher structures. It is to protect the community. If something happens there are ways to address it. It is to protect the majority of the people.
Ms. Remark asked if the Commission was voting to limit the height but you are actually voting to put a limit in the Charter. It is misleading. Vice Mayor Wilson stated that you are simply voting yes or no if you want it in the Charter that the maximum height of a house in a residential area is 28 feet.
The Mayor asked the Town Manager what a mail out ballot would cost. Commissioner Walters stated read the ballot question. He continues to read the ballot question as written in Ordinance 2005-03. Commissioner Guglietta this keeps any three commissioners from changing that Ordinance 2004-01. The people must vote.
Ms. Dieterlie asked why the other citizens of the town can’t be educated. I believe that this is confusing. Why do we have to rush why can't we take more time and educate the people.
Vice Mayor Wilson stated that this is the only night left to make a decision. Commissioner Walters stated that we have been working on this for 2 years.
Commissioner Price stated that the people think they are voting on the height, not on putting it in the charter.
Ms. Dieterlie stated that she is against the fact that 99% of the people don't know what they are going to vote on.
Commissioner Price stated that the Charter issue has only been talked about for a few months.
Ms. Remark asked if Ordinance 2004-01 will be able to be amended. Attorney Gougelman stated that it can be amended but the Charter will supersede.
There being no further discussion the Mayor called for the question. The Mayor asked the clerk to read the original motion.
The motion carried with Commissioner Price voting no.
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The final item on the agenda was the verification of election petitions for Mayoral candidates.
The Town Clerk stated that she has certified each candidates petitions against the voter registration log provided by the Supervisor of Elections and that both candidates has the correct number of signatures required. (25).
Motion by Commissioner Price to approve nominating petitions for November 2005 election. Second by Commissioner Guglietta. The motion carried.
Motion by Commissioner Guglietta to order names be placed on the November 8, 2005 ballot to read Mr. Bruce Black, and Mr. William G, Stacey for Mayor. Second by Commissioner Price. The motion carried unanimously.
The Mayor stated that he knew of a situation that was to come up at the next Regular Meeting of the Commission and that he wanted to address that problem at this time. Attorney Gougelman indicated that this issue was not on the agenda, and because this was a special meeting only items on the agenda could be addressed.
Motion by Commissioner Walters to adjourn. Second by Commissioner Guglietta. The motion carried unanimously.
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William G. Stacey
Mayor
ATTEST:
Patricia J. Burke, CMC
Town Clerk