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Home My WebLink About2007 03 19 Regular 614 Resolution Number 2007-15 Ad Hoc Winter Springs Property Tax Reform Action Study Committee CITY OF WINTER SPRINGS 031207 _COMM_ RegulacAdd-On_614_Ad_Hoc_Tax_Reform Action Study Committee COMMISSION AGENDA ADD-ON ITEM 614 Consent Informational Public Hearin Re ular x ('I March l.i: 2007 Dept. ~ar Meetmg ,'~eCi eLl REQUEST: The City Manager requesting the City Commission to review and approve Resolution Number 2007-15 regarding the establishment of the Ad Hoc Winter Springs Property Tax Reform Action Study Committee. PURPOSE: This agenda item is needed to respond to the Commission's request to formalize the duties of the Tax Reform Study Committee. CONSIDERATIONS: At the March 7, 2007 Special Meeting the Commission adopted a motion to establish the above referenced Committee, and directed the City Manager to develop a formal statement of duties. FUNDING: Not Applicable. RECOMMENDATIONS: It is recommended that the Commission adopt Resolution Number 2007-15 and any amendments it deems appropriate. ATTACHMENTS: Resolution Number 2007-15 City Boards COMMISSION ACTION: RESOLUTION NUMBER 2007-15 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA ESTABLISHING THE AD HOC WINTER SPRINGS CITIZEN PROPERTY T AX REFORM ACTION STUDY COMMITTEE. WHEREAS, the Florida legislature is considering numerous proposals for changing the State's Property Tax System; and WHEREAS, the proposed changes represent severe challenges to the City's financial ability to continue to provide the level of services now provided to the residents of Winter Springs; and WHEREAS, these proposals would necessitate substantial reductions in the current level of services provided by the City and or substantial increases in user charges which place a disproportional burden upon residents living on fixed incomes, and the less fortunate; and WHEREAS, the Mayor and Commission desires to take extraordinary measures to inform the public as to the financial losses and related service reductions that will result from legislative proposals; and WHEREAS, the City Commission desires to take extraordinary measures to involve the public in the formulation of strategies to mitigate the impacts of adopted legislative actions which may include reduction of services and or utilization of alternative revenues, and pre- referendum public educational strategies. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, AS FOLLOWS: 1. Ad Hoc Property Tax Mitigation Task Force: A. The Mayor and Commission shall appoint an Ad Hoc Property Tax Reform Committee made up of twelve (12) members appointed equally by the Mayor and each Commissioner. The appointed membership of the Committee shall include not less than one member from each of the standing boards of the City. B. The purpose of this Task Force shall be as follows: 1) To become thoroughly familiar with proposed and adopted Property Tax Legislation, and municipal service programs effected by proposed and adopted Legislation, and strategies for mitigating the impacts of. 2) To make recommendations to the Mayor and City Commission regarding strategies that should be employed to mitigate the effects of Property Tax Legislation taken by the 2007 Legislative Session including the following: a) The reduction and or elimination of services. b) The adoption of alternative revenue measures. c) Some combination of the above. d) Other measures deemed appropriate. 3) To make recommendations to the Mayor and Commission regarding pre- referendum public education strategies that should be employed to provide the public with factual information regarding the impacts of the proposed referendum on the delivery of essential services in the City. II: ORGANIZAITON PHASE: Task 1. Appointment of Committee Members Task 2. Committee Orientation III: STRATEGIC PHASE - PRE LEGISLATION PHASE Task 1. Committee Education · Legislative Motivation · Legislative Proposals · Municipal Service Programs Effected Task 2. Development of Strategic Plan · Best Case Scenario - Application of alternative revenues to fund losses. · Worst Case Scenarios - Reduction or elimination of service programs to offset revenue losses. · Combination of alternative revenues and service reduction or elimination. Task 3. Public Education · Formulation of public education strategies IV : TACTICAL PHASE "A" POST LEGISLATIVE - PRE REFERENDUM PHASE. Task 1. Familiarization with adopted Legislation. Task 2. Refinement of service impact strategies. Task 3. Refinement of strategic alternatives. Task 4. Refinement of pre-referendum public education strategies. V: TACTICAL PHASE "B" POST REFERENDUM PHASE Task 1. Finalize mitigation recommendation. Task 2. Publish final mitigation recommendations with Commission. VI: All actions by the Committee shall be confirmed by consensus as opposed to voting. VII: Any member of the Committee who desires may publish a minority report which shall be made a part of the record. ADOPTED by the City Commission of the City of Winter Springs, Florida, III a Regular Meeting assembled on the day of , 2007. JOHN F. BUSH, Mayor ATTEST: ANDREA LORENZO-LUACES, City Clerk Approved as to legal form and sufficiency for The City of Winter Springs, Florida only: ANTHONY A. GARGANESE, City Attorney City of Winter Springs, Florida Resolution Number 2007-15 BOARD OF ADJUSTMENT MEMBERS: Seat One: Ms. Linda Collins 222 Shore Road Winter Springs, Florida 32708 Telephone: (407) 327-1829 Telephone: (407) 551-1305 [Business] Term Expires: July 2009 Seat Two: Mr. Tom Waters, Chairman 1033 Antelope Trail Winter Springs, Florida 32708 Telephone: (407) 699-0481 [Residence] Telephone: (407) 665-2261 [Business] Facsimile: (407) 324-5731 (Please Call Prior To Faxing) email: tch205@aol.com Term Expires: July 2007 Seat Three: Mr. Jack Taylor, Vice Chairman 695 Bear Paw Court Winter Springs, Florida 32708 Telephone: (407) 366-0468 [Residence] Term Expires: July 2009 Seat Four: Ms. Kathryn Fairchild 1346 Pheasant Circle Winter Springs, Florida 32708 Telephone: (407) 699-5312 [Residence] Telephone: (407) 740-6651 [Business] Term Expires: July 2007 Seat Five: Mr. Howard Casman 1076 Winding Waters Circle Winter Springs, Florida 32708 Telephone: (407) 327 -4884 [Residence] Telephone: (407) 774-1995 x158 [Business] Term Expires: July 2009 LOCATION: City Of Winter Springs Municipal Building (City Hall) 1126 East State Road 434, Winter Springs, Florida 32708 Commission Chambers MEETING DATES: Regular Meetings Are Held On The First Thursday Of Each Month, If Scheduled MEETING TIME: 7:00 p.m. 2006 REGULAR MEETING SCHEDULE: January 5, 2006 May 4, 2006 February 2, 2006 June I, 2006 March 2, 2006 July 6, 2006 April 6, 2006 August 3, 2006 September 7, 2006 October 5, 2006 November 2, 2006 December 7,2006 STAFF REPRESENTATIVES: Mr. Randy Stevenson, ASLA, Director, Community Development Department Mr. John Baker, AICP, Senior Planner, Community Development Department Ms. Eloise Sahlstrom, AICP, ASLA, Senior Planner, Community Development Department TERM OF SERVICE: 3 Years * * With the approval and passage on 09/23/02 of Ordinance 2002-28, the following excerpt [Sec. 2-42.] from this Ordinance relates to "Term of Service:" "(e) Term. Unless otherwise provided by state or federal law. f!ll board and committee members shall be appointed to serve three-year terms and may be reappointed by the city commission for subsequent three-year terms without limitation. " OCS/advisol)'boardsandcommittees/boardofadjustment/alll/meetings/2006memberlist.xls evised 06114/06 BOARD OF TRUSTEES MEMBERS: Seat One: Mr. Michael S. Blake, Vice Chairman 711 Canadice Lane Winter Springs, Florida 32708 Telephone: (407) 365-7051 [Personal] email: Michael_Blake@ajg.com Term Expires: January 2009 LOCATION: City Of Winter Springs Municipal Building (City Hall) 1126 East State Road 434, Winter Springs, Florida 32708 Commission Chambers MEETING DATES: Regular Meetings Are Held On The Last Tuesday Of Each Quarter Seat Two: Mr. A. Mark Sardo, Chairman 997 Sequoia Court Winter Springs, Florida 32708 Telephone: (407) 695-0229 [Residence] email: amsardo@cfl.rr.com Term Expires: January 2009 MEETING TIME: 7:30 p.m. 2007 REGULAR MEETING SCHEDULE: January 30, 2007 April 24, 2007 July 24, 2007 October 30, 2007 Seat Three: Vacant STAFF REPRESENTATIVES: Mr. Ronald W. McLemore, City Manager Ms. Michelle Greco, Director, Finance Department Mr. Kevin Smith, Director, General Services Department TERM OF SERVICE: 3 Years Seat Four: Mr. Vemon Rozelle 648 Redwood Drive Winter Springs, Florida 32708 Telephone: (407) 718-2190 [Mobile] email: shealund53@yahoo.com Term Expires: January 2009 Seat Five: Mr. Guy DeMaio 992 White Springs Lane Winter Springs, Florida 32708 Telephone: (407) 977-3398 [Residence] email: usguido@yahaoo.com Term Expires: January 2009 OCS/advisoryboardsandcommitteeslboardoftrustees/alll/meetingsl2007memberlist.xls :vised 02/01/07 CODE ENFORCEMENT BOARD MEMBERS: Ms. Leah Weisman 113 Brookshire Court Winter Springs, Florida 32708 Telephone: (407) 327-6215 [Residence] Term Expires: July 2008 LOCATION: City Of Winter Springs Municipal Building (City Hall) 1126 East State Road 434, Winter Springs, Florida 32708 Commission Chambers MEETING DATES: Regular Meetings Are Held On The Third Tuesday Of Each Month Mr. Jim Wentz 105 Windsor Cresent Street Winter Springs, Florida 32708 Telephone: (407) 327-2243 [Residence] Term Expires: July 2007 MEETING TIME: 7:00 p.m. Mr. Mathew Matisak, Chairman 794 Seneca Meadows Road Winter Springs, Florida 32708 Telephone: (407) 327-8484 [Residence] Telephone: (407) 771-6812 [Business] Telephone: (407) 252-7531 [Mobile] Term Expires: July 2009 2006 REGULAR MEETING SCHEDULE: January 16,2007 May 15,2007 February 20, 2007 June 19,2007 March 20, 2007 July 17, 2007 April 17, 2007 August 21, 2007 September 18, 2007 October 16, 2007 November 20, 2007 December 18, 2007 Ms. Alisa Kaufinan 750 Tanglewood Road Winter Springs, Florida 32708 Telephone: (407) 325-3255 [Residence] Term Expires: July 2008 STAFF REPRESENTATIVES: Captain Glenn Tolleson, Police Department Ms. Cathy Davidson, Code Enforcement Inspector, Code Enforcement Bureau, Police Department Mr. Jose Romero, Code Enforcement Inspector, Code Enforcement Bureau, Police Department TERM OF SERVICE: 3 Years Mr. Dick Crenshaw 751 Summerland Drive Winter Springs, Florida 32708 Telephone: (407) 696-0678 [Residence] Term Expires: July 2009 ALTERNATE MEMBERS: Ms. Sherri P. Moore (Alternate #1) 925 Dyson Drive Winter Springs, Florida 32708 Telephone: (407) 359-1026 [Residence] Telephone: (407) 896-3111 [Business] Term Expires: July 2008 Mr. Gregory Roero, Vice Chairman 602 Silvercreek Drive Winter Springs, Florida 32708 Telephone: (407) 327-1563 [Residence] Term Expires: July 2007 Mr. James B. Pitts 904 Augusta National Boulevard Winter Springs, Florida 32708 Telephone: (407) 365-8194 [Residence] Telephone: (407) 341-3704 [Mobile] Term Expires: July 2007 Ms. Laura-Leigh Wood (Alternate #2) 713 Sybilwood Circle Winter Springs, Florida 32708 Telephone: (407) 388-9771 [Residence] Telephone: (407) 310-4908 [Business] Term Expires: July 2008 >OCS/advisoryboardsandcommittees/codeenforcementboardlallllmeetings/2006memberlist.xls evised 09/14/06 PLANNING AND ZONING BOARD/LOCAL PLANNING AGENCY MEMBERS: Seat One: Mr. Tom Brown 717 Adidas Road Winter Springs, Flo~ida 32708 Telephone: (407) 366-0958 [Residence] Term Expires: July 2009 Seat Two: Ms. Linda Tillis, Vice Chairperson 1102 Erie Court Winter Springs, Florida 32708 Telephone: (407) 977-9155 [Residence] Term Expires: July 2007 Seat Three: Ms. Rosanne Karr 1323 Augusta National Boulevard Winter Springs, Florida 32708 Telephone: (407) 359-8606 [Residence] Term Expires: July 2009 Seat Four: Mr. Bill Poe, Chairman 639 Marlin Road Winter Springs, Florida 32708 Telephone: (407) 327-2435 [Residence] Telephone: (407) 699-4419 [Business] Term Expires: July 2007 Seat Five: Ms. Denise Ryser 1707 Littleton Court Winter Springs, Florida 32708 Telephone: (407) 227-2955 [Residence] Term Expires: July 2009 LOCATION: City Of Winter Springs Municipal Building (City Hall) 1126 East State Road 434, Winter Springs, Florida 32708 Commission Chambers MEETING DATES: Regular Meetings Are Held On The First Wednesday Of Each Month MEETING TIME: 7:00 p.m. 2006 REGULAR MEETING SCHEDULE: January 4, 2006 May 3, 2006 February 1,2006 June 7, 2006 March 1, 2006 July 5, 2006 April 5, 2006 August 2, 2006 September 6, 2006 October 4, 2006 November 1, 2006 December 6, 2006 STAFF REPRESENTATIVES: Mr. Randy Stevenson, ASLA, Director, Community Development Department Mr. John Baker, AICP, Senior Planner, Community Development Department Ms. Eloise Sahlstrom, AICP, ASLA, Senior Planner, Community Development Department TERM OF SERVICE: 3 Years * * With the approval and passage on 09/23/02 of Ordinance 2002-28, the following excerpt [Sec. 2-42.] from this Ordinace relates to "Term of Service:" "(e) Term. Unless otherwise provided by state or federal law, ~II board and committee members shall be appointed to serve three-year terms and may be reappointed by the city commission for subsequent three-year terms without limitation." )CS/ adv isoryboardsandcornrn i ttees/p lann ingandzon ingboardllocalp lanningagency /alll/rneetings/2006rnern berl ist. x Is vised 01/11/07 TUSCA WILLA LIGHTING AND BEAUTIFICATION DISTRICT ADVISORY COMMITTEE MEMBERS: Seat One: Ms. Mary Brook 1631 Wood Duck Drive Winter Springs, Florida 32708 Telephone: (407) 365-4890 [Residence] Term Expires: July 2007 LOCATION: City Of Winter Springs Municipal Building (City Hall) 1126 East State Road 434, Winter Springs, Florida 32708 Commission Chambers MEETING DATES: Regular Meetings Are Held On The Third Wednesday Of Each Month Seat Two: Ms. Brenda Hayes Brown 211 Nandina Terrace Winter Springs, Florida 32708 Telephone: (407) 366-8565 [Residence] Term Expires: July 2009 MEETING TIME: 7:00 p.m. Seat Three: Ms. Helen Baker, Vice Chairperson 1182 Winged Foot Circle East Winter Springs, Florida 32708 Telephone: (407) 359-8242 [Residence] Term Expires: July 2007 2007 REVISED REGULAR MEETING SCHEDULE: January 17,2007 May 16,2007 September 19,2007 February 21, 2007 June 20, 2007 October 17, 2007 March 21,2007 July 18,2007 November 21,2007 April 18, 2007 August 15, 2007 December 19, 2007 Seat Four: Mr. Rande Thompson, Chairman 108 Marsh Creek Cove Winter Springs, Florida 32708 Telephone: (407) 359-8569 [Residence] Term Expires: July 2009 STAFF REPRESENTATIVES: Mr. Ronald W. McLemore, City Manager Mr. Kip Lockcuff, P.E., Director, Public WorksfUtility Department Mr. Alan Hill, Superintendent, Public Works Department Mr. Mike Mingea, Arborist, Community Development Department Mr. Steven Richart, Urban Beautification Division Services Manager, Community Development Department Seat Five: Mr. Brantley Tillis 1102 Erie Court Winter Springs, Florida 32708 Telephone: (407) 977-9155 [Residence] Term Expires: July 2007 TERM OF OFFICE: "Two Members Of The Advisory Committee First Appointed, By The Commissioners From Seats Two And Four, Shall Serve 2- Year Terms And The Remaining Three Members First Appointed Shall Serve 3- Year Terms; Thereafter Members Shall Serve Not More Than Two Consecutive 3- Year Terms; Persons Serving Partial Terms Shall Be Entitled To Serve The Partial Term And Two Full Consecutive 3- Year Terms." ~CS/advisoryboardsandcommittees/tuscawillalightingandbeautificationdistrictadvisorycommittee/alll/meetings/2006memberlist.xls :vised 01/23/07 OAK FOREST WALL AND BEAUTIFICATION DISTRICT ADVISORY COMMITTEE MEMBERS: Seat One: Mr. Terry Patten 845 Benchwood Court Winter Springs, Florida 32708 Telephone: (407) 699-6373 [Residence] email: tp@cfl.rr.com Term Expires: August 2008 LOCATION: City Of Winter Springs Municipal Building (City Hall) 1126 East State Road 434, Winter Springs, Florida 32708 Commission Chambers MEETING DATES: Regular Meetings Are Held On The Second Thursday Of Each Month. Seat Two: Mr. Brian Oliver 630 Cheoy Lee Circle Winter Springs, Florida 32708 Telephone: (407) 699-1960 [Residence] email: boliver@cfl.rr.com Term Expires: August 2007 MEETING TIME: 7 :00 p.m. 2007 REGULAR MEETING SCHEDULE: January II, 2007 May 10, 2007 February 8, 2007 June 14,2007 March 8, 2007 July 12, 2007 April 12, 2007 August 9, 2007 September 13, 2007 October 11, 2007 November 8, 2007 December 13, 2007 Seat Three: Mr. Leo D. Marion, Vice Chairman 1054 Winter Springs Boulevard Winter Springs, Florida 32708 Telephone: (407) 695-0631 [Residence] email: Imarion@cfl.rr.com Term Expires: August 2008 STAFF REPRESENTATIVES: Mr. Ronald W. McLemore, City Manager Mr. Kip Lockcuff, P.E., Director, Public WorkslUtility Department Mr. Alan Hill, Superintendent, Public Works Department Mr. Randy Stevenson, ASLA, Director, Community Development Department Mr. Mike Mingea, Arborist, Community Development Department Mr. Steven Richart, Urban Beautification Division Services Manager, Community Development Department Seat Four: Vacant Term Expires: August 2007 TERM OF SERVICE: "Two Members Of The Advisory Committee First Appointed, By The Commission From Seats 2 And 4, Shall Serve 2- Year Terms And The Remaining Three Members First Appointed Shall Serve 3- Year Terms; Thereafter Members Shall Serve Not More Than Two Consecutive 3-Year Terms; Persons Serving Partial Terms Shall Be Entitled To Serve The Partial Term And Two Full Consecutive 3- Year Terms." Seat Five: Vacant Term Expires: August 2008 JCS/advisoryboardsandcommittees/oakforestwallandbeautificationdistrictadvisorycommittee/alll/miscellaneous/2006memberlist.xls :vised 01/23/07 BEAUTIFICATION OF WINTER SPRINGS BOARD (B.O.W.S.) MEMBERS: Seat One: Ms. Lorry Roero, Vice Chairperson 602 Silvercreek Drive Winter Springs, Florida 32708 Telephone: (407) 327-1563 [Residence] Term Expires: July 2007 Seat Two: Vacant Term Expires: July 2006 Seat Three: Ms. Ethel Beecher 1207 Winter Springs Boulevard Winter Springs, Florida 32708 Telephone: (407) 699-6488 [Residence] Term Expires: July 2007 Seat Four: Ms. Alice Bard, Chairperson 649 Cheoy Lee Circle Winter Springs, Florida 32708 Telephone: (407) 884-2000 [Business] Term Expires: July 2009 Seat Five: Ms. Denise Ritchey 155 Cherry Creek Circle Winter Springs, Florida 32708 Telephone: (407) 365-0976 [Residence] Term Expires: July 2007 LOCATION: City Of Winter Springs Municipal Building (City Hall) 1126 East State Road 434, Winter Springs, Florida 32708 Commission Chambers MEETING DATES: Regular Meetings Are Held On The Second Wednesday Of Each Month MEETING TIME: 7:00 p.m. 2006 REGULAR MEETING SCHEDULE: January 10,2007 May 9, 2007 February 14,2007 June 13,2007 March 14,2007 July 11,2007 April II, 2007 August 8, 2007 September 12, 2007 October 10, 2007 November 14,2007 December 12, 2007 STAFF REPRESENTATIVES: Mr. Randy Stevenson, ASLA, Director, Community Development Department Mr. Mike Mingea, Arborist, Community Development Department Mr. Steven Richart, Urban Beautification Division Services Manager, Community Development Department TERM OF SERVICE: 3 Years Mayor's Appointee: Ms. JoAnn Mattie 685 Fortrose Drive Winter Springs, Florida 32708 Telephone: (407) 695-4344 [Residence] Term Expires: July 2008 Mayor's Appointee: Mr. Lawrence Chmura 634 Jeffrey Court Winter Springs, Florida 32708 Telephone: (407) 327-8037 [Residence] Term Expires: July 2008 )CS/ advisoryboardsandcommittees/beauti ficati ana fWinterspringsbaardl alll/meetings/2006mem berl ist.xls :vised 07/14/06 RESOLUTION NUMBER 2007-15 WAS FIRST DISCUSSED AND APPROVED (WITH CHANGES) AT THE MARCH 19, 2007 SPECIAL MEETING. THIS VERSION WAS NEVER SIGNED - A REVISED RESOLUTION 2007-15 WAS THEN RE-APPROVED BY THE CITY COMMISSION AT THE MARCH 26, 2007 REGULAR CITY COMMISSION MEETING AND THEN SIGNED. THE ONLY SIGNED VERSION IS FROM THE MARCH 26, 2007 REGULAR CITY COMMISSION MEETING. Date: March 19,2007 The attached was distributed to the Mayor and City Commission during Regular "614" at the March 19, 2007 City Commission Special Meeting. PROPERTY TAX CRISIS We are indeed living in scary times in local government when a Legislature that has a less than admirable reputation for fixing anything attempts to clean up the mess they created with their pervious efforts to reform a property tax system that was working the way it was supposed to work in appraising property at its true value and assessing property on an equitable basis instead of creating privileged classes of taxpayers. Although, the implications of the legislature's proposal could be substantial, there is absolutely no cause for knee jerk reactions on the part of the City. No city in the state is better positioned to address the ramifications of whatever the Legislature may formally propose than the City of Winter Springs. Management's responsibility is not to react in crisis mode to change. Management's responsibility is to manage change. The first function of management in managing change is to anticipate the future. Any city or county management professional with half a brain could see the impending property tax crisis forming on the horizon due to the five dynamics listed below: 1. Adoption of the Save Our Homes constitutional amendment that created privileged classes of taxpayers thus unfairly shifting the property tax burden to the unprivileged classes. 2. The legislature's abdication of its responsibility for funding education by forcing local school districts to increase property taxes, property taxes capped constitutionally at 10 mills, thus de facto mandating charter schools. 3. The legislature's abdication of its responsibility to fund the judicial system, forcing local governments to increase property taxes to pay for this basic state function at the local level. 4. The legislature's continuous and consistent practice of passing unfunded legislative mandates on local governments that cause local governments to raise property taxes and user charges to comply with the mandates. 5. Public desire for more and better service. The combination of these actions has caused a disproportional allocation of the cost of government services on local government and an unfair distribution of the cost to an unprivileged class of taxpayers. Page 1 of 4 In anticipation of this day, the city has taken a number of steps listed below to minimize our vulnerability to the legislature's reaction to the mess it has made, blame for which it has conveniently laid in the laps of local government. 1. We have adopted and followed conservative fiscal polices which have resulted in very strong reserves. 2. We have taken actions to reduce dependencies upon property tax supported expenditures through the maximization of user charges. Some of these actions were criticized when we adopted them. However, the wisdom of these actions is clear today. For example, a. Funding all stormwater activities from the Stormwater Utility Fund user fees rather than property taxes. b. Funding all Building and Development activities from the Development Services Fund user fees rather than a combination of user fees and property taxes. c. Establish user charges for athletic leagues to help pay for the cost of field maintenance. d. Funding all Solid Waste removal from the Solid Waste Fund user fees rather than property taxes. 3 . We have required enterprise and special revenue funds to make fair share overhead contributions to the General Fund to reduce property taxes. 4. We have maximized impact fees to pay for growth. 5. We have minimized the growth of employees and personnel costs while avoiding exotic compensation schemes and cherry-picked survey data. 6. Finally, we have avoided the temptation to acquiesce to the Legislative mandates of Chapter 175/185 pension plans and the State Pension Plan which Hank Fishkind of Fishkind and Associates recently described to the Budget and Policy Committee of the Legislature to be the single largest drain on the state economy due to state legislated mandates. The second function of management is to assist policy makers in looking through rather than looking at the destructive rhetoric of a crisis which often immobilizes policy makers in knee jerk, reactive actions which only serve to make the situation worse. By looking through the problem management can assist policy makers in identifying where it wants to be after the crisis, and to provide policy makers with an intelligent set of alternatives designed to get to the solution. This is somewhat of a more difficult challenge in this case for two reasons: 1. We don't, as of yet, know what the legislature is going to impose on us. 2. We don't know the time frame in which it will happen. Page 2 of 4 Nonetheless, my advice to you is to relax, take a breath and be assured that we will put you in a position to make intelligent decisions. We plan to accomplish this by developing a worst case, middle case, and best case set of scenarios at the strategic level which will provide us with the information base we need to shift to a tactical decision making mode very quickly when we know what the final proposal and time frames will be. We will begin rolling out this plan to you no later the first of April. This plan will have three scenarios as follows: Goal 1. Best Case. Replace lost property tax revenues with other sources of revenue and maintain service levels. Goal 2. Worst Case. Reduce service levels to offset lost revenues. Goal 3. Middle Case. Utilize a combination of service level reductions and alternative revenue measures. Each scenario will contain alternatives to accomplish the goal. Once we know what the final medicine tastes like, you will simple pull down the mitigation alternatives you deem most appropriate. Although we don't need to get into a "sky is falling" mind set, it is important that we take prudent actions to best position us for application of the most favorable set of mitigation strategies. That prudent policy is recommended as follows: 1. Continue the level of funding required to sustain current service levels through September 30, 2007. 2. Delay spending that is not required to maintain service levels through September 30, 2007. This policy would delay any new funding initiatives until October 1, 2007 and delay funding not required to sustain current service levels. . Eliminate mid-year salary plan adjustments. Delay city hall expansion. Delay fire truck purchase. Delay benefit changes to pension plan requiring added City-paid contributions. . . . . Delay implementation of Wifi. Delay Dog Park Construction. Deny requests for any mid year new positions in FY 2007 budget. . . Page 3 of 4 Desired Outcomes BEST 1. Make it feasible for a Commission super majority vote to maintain service levels based upon broad community support. MIDDLE 2. Develop sufficient alternative revenue sources to offset legislative mandate cuts. WORST 3. Develop the lowest possible service reduction mitigation plan. Page 4 of 4 PROPERTY TAX REFORM SCHEDULE MAR APRIL MAY JUNE JULY AUG SEPT OCT Organization Phase X Strategic Phase - Post Legislative - Pre Referendum Task 1 - Familiarization X Adopted Legislation Task 2 - Review Service Impact Statements X Task 3 - Develop Strategic Revenue & Spending Plans X Task 4 - Develop Pre Referendum Public Education Strategy X Task 5 - Execute Pubic Education X X Referendum Tactical Phase - Post Referendum Task 1 - Finalize Revenue & Spending Mitigation X Recommendations Task 2 - Publish Revenue & Spending Mitigation X Recommendations Adopt Budget X Implement Budget X X 60% 50% 400/0 30% 20% 100/0 00/0 -100/0 Where did the Money Go? Allocation of Use FY 2000 - FY 2007 Public Safety Parks/Rec Other Beautification Info Tech Debt Service Public Works Senior Services Planning