HomeMy WebLinkAbout2019 07 08 Regular 500 - FY 2020 Budget Overview, Millage Cap, Loan Forgiveness REGULAR AGENDA ITEM 500
T°9 CITY COMMISSION AGENDA I JULY 8, 2019 1 REGULAR MEETING
TITLE
FY 2020 Budget Overview, Millage Cap, Loan Forgiveness
SUMMARY
The City Manager requests that the City Commission receive the Fiscal Year 2020
Budget Overview from staff, consider approval of Resolution 2019-19 to forgive the
internal loan to the Central Winds General Obligation Debt Service Fund, eliminate
the related voted debt millage rate; and consider approval of Resolution 2019-12,
computing the Proposed Operating Millage Pate for Fiscal Year 2019-2020 at 2.4300
mills, establishing the rolled-back rate, and setting the date, time and place of a
public hearing to consider the proposed millage rate and tentative budget for Fiscal
Year 2019-2020.
The FY 2018-2019 (current) millage rate consists of an operating millage rate of
2.4300 mills and a voted debt service millage rate of 0.0500 mills. The FY 2019-2020
proposed budget as transmitted by the City Manager on July 1, 2019, incorporates
an operating millage rate of 2.4300 and eliminates the voted debt service millage
rate of 0.0500. Gross taxable value from the Property Appraiser (inclusive of new
construction and annexations) as reflected on the DP-420 is$2,517,669,920,which is
9.8% more than the DP-403 valuation for FY 2018-2019.
FY 18/19 FY 19/20 Change
Operating 2.4300 2.4300 0.0000
Voted Debt 0.0500 0.0000 (0.0500)
Tota 1 2.4800 2.4300 (0.0500)
• This resolution will establish the millage rate cap. The final millage rate can
be less than the adopted millage rate cap, but it cannot exceed the cap
without increased expense to the City.
• This proposed millage rate will be applied to the property owners' assessed
values and mailed by the Property Appraiser to each property owner in the
form of the TRIM notice.
The Resolution also establishes the rolled-back rate at 2.2770 mills as calculated on
form DP-420. The rolled-back millage rate is that rate which produces the same
amount of taxes as levied in the prioryearwhen calculated againstthe currentyear's
tax base exclusive of new construction. The proposed operating millage rate of
2.4300 is 6.72% more than the calculated rolled-back rate. The Resolution sets the
date, time and place of the public hearing to consider the proposed millage rate
and the tentative budget - September 9, 2019 at 6:30 P.M. at 1126 East State Road
434, Winter Springs, Florida (Commission Chambers). This meeting time cannot
change once it has been reported as such on the DP-420.
The Fiscal Year 2020 Budget as proposed, totals $30,477,703 (excluding
appropriations to fund balance) and represents a $1,413,467 or 2.7% decrease from
the prior fiscal year's budget of$31,893,172. Total proposed General Fund spending
of $18,806,036 represents a $228,136 increase from the prior fiscal year. The
proposed operating millage rate of 2.43 mills remains unchanged from the prior
fiscal year and it is proposed that the voted debt service millage rate of 0.0S mills be
eliminated.
The increase in property values which has been programmed into the FY 2020
Proposed Budget is sufficient to fund the proposed budget as transmitted by the
City Manager on July 1, 2019 barring any unforeseen endogenous or exogenous
economic impacts.
RECOMMENDATION
It is recommended that the Commission adopt Resolution 2019-19 (loan forgiveness)
and 2019-12 (millage cap).
A sample' motion follows which includes the necessary elements for statutory
compliance:
I make the motion that the City of Winter Springs adopt Resolution 2019-19 to
forgive the internal loan to the Central Winds General Obligation Debt Service Fund
from Capital Project Fund #30S and discontinue the voted debt millage rate; and
That the City of Winter Springs adopt Resolution 2019-12 to establish the proposed
operating millage rate at 2.4300 mills and publicly announce that the proposed
operating millage rate is 6.72% more than the computed rolled-back rate of 2.2770
mills; and establish the public hearing regarding the proposed millage rate and
tentative budget as September 9,2019 at 6:30 pm at 1126 E. State Road 434 in Winter
Springs.
REGULAR AGENDA ITEM 500 1 MONDAY,
RESOLUTION NUMBER 2019-12
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, ESTABLISHING THE ROLLED-BACK
RATE; COMPUTING A PROPOSED MILLAGE RATE (CAP); AND
SETTING THE DATE, TIME AND PLACE OF A PUBLIC HEARING TO
CONSIDER THE PROPOSED MILLAGE RATE AND TENTATIVE
BUDGET FOR FISCAL YEAR 2019-2020; PROVIDING FOR REPEAL OF
PRIOR INCONSISTENT RESOLUTIONS; SEVERABILITY; AND AN
EFFECTIVE DATE.
WHEREAS,Florida Statute 200.065 (2) (a) 1 expressly provides that municipalities shall
compute a proposed millage rate; and
WHEREAS, Florida Statute 200.065 (4) (b) requires that within 35 days of certification
of value, each taxing authority shall advise the property appraiser of its proposed millage rate, of
its rolled-back rate, and of the date, time, and place at which a public hearing will be held to
consider the proposed millage rate and the tentative budget; and
WHEREAS, Florida Statute 200.065 (4) (c) further requires that within 80 days of
certification of value, but not earlier than 65 days after certification, the governing body of each
taxing authority shall hold a public hearing on the tentative budget and proposed millage rate; and
WHEREAS, the City Commission of the City of Winter Springs deems that this
Resolution is in the best interest of the public health, safety, and welfare of the citizens of Winter
Springs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA,AS FOLLOWS:
Section 1. Incorporation of Recitals. The foregoing recitals are deemed true and correct
and are hereby fully incorporated by this reference.
Section 2. Proposed Millage Rate. The proposed operating millage rate for the City of
Winter Springs,Florida for the Fiscal Year 2019-2020 is set at 2.4300 mills which is 6.72%greater
than the computed aggregate rolled-back rate of 2.2770 mills.
The millage rate for the City of Winter Springs for voted debt service has been discontinued
pursuant to Resolution No. 2019-19.
Section 3. Public Hearing. A public hearing shall be held in the City Commission Chambers
located at City Hall, 1126 East State Road 434, Winter Springs, Florida, on September 9, 2019 at
6:30 P.M. to consider the adoption of the proposed millage rate and the tentative budget for Fiscal
Year 2019-2020.
City of Winter Springs,Florida
Resolution 2019-12
Page 1 of 2
Section 5. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of
resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 6. Severability. If any section, subsection, sentence, clause, phrase, word, or
portion of this Resolution is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portion hereto.
Section 7. Effective Date. This Resolution shall become effective immediately upon
adoption by the City Commission of the City of Winter Springs, Florida.
RESOLVED by the City Commission of the City of Winter Springs, Florida in a regular
Commission meeting assembled on the 8th day of July, 2019.
Charles Lacey, Mayor
ATTEST:
Andrea Lorenzo-Luaces, City Clerk
Approved as to legal form and sufficiency for
the City of Winter Springs only:
Anthony A. Garganese, City Attorney
City of Winter Springs,Florida
Resolution 2019-12
Page 2 of 2
RESOLUTION NUMBER 2019-19
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, FORGIVING THE REMAINING
PRINCIPAL BALANCE OF THE CENTRAL WINDS PARK INTERNAL
NOTE APPROVED PURSUANT TO RESOLUTION NUMBER 2016-21 IN
THE AMOUNT OF APPROXIMATELY $860,000.00; COMMENCING IN
CITY FISCAL YEAR 2019/2020, DISCONTINUING THE LEVY OF THE
VOTER APPROVED LIMITED AD VALOREM TAX DEBT MILLAGE
OBLIGATION APPROVED BY THE REGISTERED VOTERS OF THE
CITY OF WINTER SPRINGS IN A BOND REFERENDUM ON
SEPTEMBER 4, 2001; PROVIDING FOR REPEAL OF PRIOR
INCONSISTENT RESOLUTIONS; SEVERABILITY; AND AN
EFFECTIVE DATE.
WHEREAS, on September 4, 2001, registered voters of the City of Winter Springs
authorized the issuance of limited ad valorem bonds in a principal amount not to exceed
$3,400,000.00, to bear interest at a rate not to exceed the maximum rate permitted by law, and by
levying an ad valorem tax not to exceed one-quarter of one mill (0.25) on all taxable property
within the City of Winter Springs to be used for purposes of repaying such bonds required to
acquire land and expand Central Wind Park and to construct soccer, football, baseball and other
recreational facilities on said land ("Pledged Funds"); and
WHEREAS, on February 27, 2002, following the approval of the issuance of its 2002
Bonds (as hereinafter defined) at a bond referendum election, the City of Winter Springs, Florida
(the "City") issued its Limited General Obligation Bonds, Series 2002 in the amount of
$3,400,000.00 (the "2002 Bonds"); and
WHEREAS, pursuant to City Resolution No. 2012-14, the City accepted the proposal of
Branch Banking and Trust Company to refund the 2002 Bonds and issued a note, dated May 18,
2012 (the "2012 Note") secured by the Pledged Funds; and
WHEREAS, pursuant to City Resolution No. 2016-21, the City utilized unrestricted
capital project reserves available to refund the 2012 Note on January 1, 2017 or soon thereafter,
provided the City's Capital Project Fund Reserve Account 9305 is secured and repaid by the
Pledged Funds in accordance with the terms and conditions of said Resolution and the Limited
General Obligation Refunding Central Winds Park Internal Note, Series 2017 in an amount not to
exceed $1,300,000.00 (the "Central Winds Park Internal Note" or"Internal Note"); and
WHEREAS, the money utilized from the Capital Project Fund Reserve Account 4305 to
refund the 2012 Note originated from excess general fund reserves transferred into the Capital
Project Fund Reserve Account 9305 in Fiscal Year 2016; and
WHEREAS,the City currently has excess unrestricted general fund reserves in a sufficient
amount of approximately$860,000.00 that would fiscally justify and warrant the City Commission
City of Winter Springs,Florida
Resolution 2019-19
Page 1 of 2
forgiving the remaining principal balance of the Central Winds Park Internal Note without levying
any additional voter approved ad valorem millage authorized by referendum on September 4,
2001; and
WHEREAS, by forgiving the remaining principal balance of the Central Winds Park
Internal Note,the City can discontinue sooner than expected the voter approved limited ad valorem
tax millage obligation approved by the registered voters of the City of Winter Springs in a bond
referendum on September 4, 2001; and
WHEREAS, the City Commission of the City of Winter Springs deems that this
Resolution is in the best interest of the public health, safety, and welfare and of the citizens of
Winter Springs.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, SEMINOLE COUNTY,FLORIDA,AS FOLLOWS:
Section 1. Incorporation of Recitals. The foregoing recitals are deemed true and correct
and are hereby fully incorporated by this reference.
Section 2. Forgiveness of Internal General Obligation Loan. Effective at the
commencement of the next City fiscal year on October 1, 2019, the remaining principal balance
of the Central Winds Park Internal Note authorized by City Commission Resolution Number 2016-
21 is hereby deemed forgiven and cancelled. The City Manager and Finance Director shall
complete a final accounting of the Pledged Revenues received by the City and the Central Winds
Park Internal Note in accordance with applicable accounting requirements.
Section 3. Discontinuance of Voted Debt Milla2e Obligation. The City Commission
hereby expresses its intent to discontinue the levy of the voter approved limited ad valorem tax
debt millage obligation approved by the registered voters of the City of Winter Springs in a bond
referendum on September 4, 2001. The aforementioned limited ad valorem tax debt millage rate
shall not be levied in future fiscal years commencing with the upcoming 2019/2020 City fiscal
year. The City Manager and Finance Director are hereby directed to work with the Florida
Department of Revenue and Seminole County Tax Collector to effectuate the discontinuance in
accordance with this Section. In addition, the proposed City budget and millage rate resolutions
for the upcoming new fiscal year 2019/2020 shall not include and incorporate the aforementioned
discontinued limited ad valorem tax debt millage rate.
Section 4. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of
resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 5. Severability. If any section,subsection,sentence,clause,phrase,word,or portion
of this Resolution is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such
holding shall not affect the validity of the remaining portion hereto.
Section 6. Effective Date. This Resolution shall become effective immediately upon
City of Winter Springs,Florida
Resolution 2019-19
Page 1 of 2
adoption by the City Commission of the City of Winter Springs,Florida.
RESOLVED by the City Commission of the City of Winter Springs, Florida in a regular
Commission meeting assembled on the 8th day of July, 2019.
Charles Lacey,Mayor
ATTEST:
Andrea Lorenzo-Luaces, City Clerk
Approved as to legal form and sufficiency for
the City of Winter Springs only:
Anthony A. Garganese, City Attorney
City of Winter Springs,Florida
Resolution 2019-19
Page 2 of 2