MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS

BREVARD COUNTY, FLORIDA

 

 

March 8, 2007

 

 

 

The Board of County Commissioners of Brevard County, Florida, met in special/workshop session on March 8, 2007, at 1:05 p.m. in the Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida.  Present were:  Chairperson Jackie Colon, Commissioners Truman Scarborough, Chuck Nelson, Helen Voltz, and Mary Bolin, County Manager Peggy Busacca, and County Attorney Scott Knox.

 

 

 

Motion by Commissioner Scarborough, seconded by Commissioner Bolin, to adopt Resolution congratulating Eagle Scout Joseph Praver.  Motion carried and ordered unanimously. 

 

 

 

Motion by Commissioner Nelson, seconded by Commissioner Voltz, to adopt Resolution proclaiming March 10, 2007 as a day to honor the soldiers engaged in the last Naval battle of the American Revolutionary War.  Motion carried and ordered unanimously.   

 

 

Commissioner Nelson stated he will present the Resolution on Saturday at the Port as part of the ceremony.  

 

 

 

County Attorney Scott Knox stated this is a ratification of the Agreement the Board agreed to in the Executive Session.

 

Motion by Commissioner Voltz, seconded by Commissioner Nelson, to ratify the Settlement Agreement for Brevard County v. Barnes Boulevard Warehouse, which was brought to the Board ’s attention at the March 6, 2007 Executive Session.  Motion carried and ordered unanimously. 

 

 

County Manager Peggy Busacca stated the requested letter of support is to include Mosquito Control pilots as part of the Special High Risk class.

 

Motion by Commissioner Scarborough, seconded by Commissioner Voltz, to approve sending a letter supporting Senate Bill 1484 and House Bill 69, relating to establishment of a Special Risk Class for Mosquito Control pilots, and acknowledging willingness to accept the increased retirement contributions for Mosquito Control pilots.  Motion carried and ordered unanimously. 

 

 

 

Motion by Commissioner Nelson, seconded by Commissioner Scarborough, to appoint Larry Garrison to the Health Facilities Authority with term of appointment expiring on December 31, 2007.  Motion carried and ordered unanimously. 

 

 

 

Assistant County Manager Stockton Whitten stated staff has provided the Commissioners with amended copies of the presentation; a lot of the information is going to be historical; and staff thought it important to provide the Board with a refresher and the public with an education of where the County has gone in terms of valuations, millage rates, and tax rates over the last five years.  He displayed slides; and stated they will begin with the makeup of the budget and some information from an historical perspective; information is being provided to the public from other sources concerning valuations and taxes; and it is important for staff to present the information as it has been adopted by the Board over the last five years. 

 

Commissioner Voltz inquired if other taxes are shown; with Mr. Whitten responding it is on the fifth page of the new presentation.  Mr. Whitten explained why and how the pages were reprinted.  Commissioner Voltz stated under total budget, there is one page; and inquired if all the line items are split onto different pages.  County Manager Peggy Busacca advised staff will be happy to answer questions as they go through the presentation.  Commissioner Voltz stated one of the questions she had was about dollars carried over from the prior fiscal year; it appears that there is all this money left over from last year that was not spent; and now they are going to add it to the budget instead of decreasing property taxes or doing something else.  She stated the public will be asking these questions.  Mr. Whitten stated staff is prepared to answer questions; the funds that are designated as carry over are either for capital projects or restricted or unrestricted reserves; and there are reserves in the Insurance Fund, the Utility Services Department, and the Solid Waste Department, as well as the $15 million General fund reserves.  He stated they are characterized as carry over, but in most instances, they are reserves.  Commissioner Voltz inquired if it is not money that the Board has to spend at will; with Mr. Whitten responding the unobligated dollars will be brought to the Board at the mid-year budget; historically for the last two or three years, there have been $4 million to $5 million; so when the Board sees the big reserve or carry forward numbers, they are primarily reserves from enterprise agencies, internal services funds, or general fund reserves.  Commissioner Voltz inquired about the statutory reduction; with Mr. Whitten responding the State of Florida only
allows the County to budget for 95% of the revenues it anticipates, so the statutory reduction is the 5% that the Board is not allowed to budget for.  Commissioner Voltz stated that is why it looks like the County has a lot of cash that it cannot spend.  Mr. Whitten stated the system is structured so if the County collects over 95% of its revenues, it will always have dollars that are above and beyond what it has budgeted for.  Ms. Busacca advised the Board could spend it in the next year; with Mr. Whitten advising they do that at mid-year again, and then carry forward for subsequent fiscal years. 

 

Mr. Whitten stated the County’s total budget is $1.16 billion; staff thought it was important to show how those dollars are broken up in terms of revenue sources; and $257 million is carried forward for capital projects, which are either projects that did not get finished, were anticipated to be finished, or which have been delayed.  He stated the first category with regards to that is the $257.8 million for carry forward for capital projects; and the graphics show that the $1.6 billion is being reduced by the amount of dollars being discussed.  He stated the next category is property taxes; that is $252.5 million, which represents 21% of the $1.6 billion budget; and the next category is business type operations at $209.5 million or 18%. 

 

Commissioner Voltz requested Mr. Whitten explain what the categories are for the general public because if they glaze over it, it will look like there is money there.  Commissioner Scarborough stated Mr. Rogero put a program together where he went through the budgets; and it was aired.  He suggested, rather than Mr. Whitten explaining now, another program be put on to describe the categories.  Commissioner Voltz stated she does not think it is necessary to go into detail; and requested Mr. Whitten explain what business-type operations means.  Commissioner Scarborough stated his point is that he does not think there is adequate opportunity for people to fully understand this; but if the Board authorized a presentation, it would help the public.  Commissioner Voltz noted people are watching today; with Commissioner Scarborough advising he is not arguing that point, but he wants to take it one step further.  Chairperson Colon commented on Mr. Rogero’s previous on-air experience; and stated the Board is putting him back on the air.  Mr. Whitten stated they will put this on Space Coast Government Television; Mr. Rogero will make the explanations; and staff has tried to make the presentation understandable to the layperson, realizing that governmental budgeting is complicated.  Commissioner Voltz requested staff let them know when those presentations will be aired so they can let people know.  Mr. Whitten stated business-type operations are those operations that are self-supporting and charge a fee for service; they are similar to a business operating out of the commercial enterprise; and the net category shows the dollars carried forward for the prior fiscal year that are not associated with capital projects.  He noted as discussed earlier, those are primarily reserve dollars; and that is $170.4 million, representing 14.7% of the budget. 

 

Commissioner Scarborough stated many times the Board  said it needed to take some money to do something unique and asked how much was in reserves; staff would advise of a number that is one-tenth of the number being given; and inquired what is the difference between the two.  Mr. Whitten stated the difference is the figure that he always gives the Board is the General Fund reserve figure; that is the reserve the Board has the authority to use if it deems necessary; and the others are proprietary or enterprise fund reserves that can only be spent within the particular function; so the Board does not have the ability to use those in most cases for a Countywide use.  Ms. Busacca stated many times bonds require the County have a certain
amount of money in the bank for coverage for the last bond payment; and the Board has no discretion over those until the bonds are paid off. 

 

Mr. Whitten stated the next category is grants and other governmental aid at approximately $91.5 million representing 7.9% of the total budget; the next category is the interdepartmental transfers at approximately $61 million; and this would be the most difficult concept for the layperson to understand because these are dollars that are counted twice.  He advised they come in as revenue and are transferred out to other departments or functions; and the accounting of that transfer has to be represented as a revenue, and on the expenditure side, it is represented as an expenditure.  He stated looking at the County’s budget, it says there is $1.16 billion there; but a portion of that, approximately $61 million, are dollars that are simply being recycled.

 

Commissioner Voltz stated recycled dollars sounds bad; and explained the process whereby money is shown as revenue but because something is purchased from another department, it also has to be shown as an expenditure.  She stated the same dollars are changing hands; but this is the way it has to be shown in the general ledger.

 

Mr. Whitten stated the next category is the other taxes, representing $43.5 million; the statutory reduction is approximately $27 million; and that is the 5% that the County is not allowed to budget by State law.  He stated ironically, the Charter officer transfers have to be by State law at 100%; so while the County is reducing its gross revenue by 5%, the Charter officer transfers are at 100%.  He stated the property taxes are a percentage of the total County budget at 21.5%; so while $252 million is a huge number, it only represents less than one-quarter of the County budget.  He stated in terms of how the property taxes are distributed or broken out, the first category are the voted operating, which includes the Fire Control MSTU, representing $27.6 million or 10% of the $252.5 million.  He stated the next category is the voted debt, representing $17.3 million or 6.9% of the $252.5 million, so for the total tax bill of $252 million, $48 million to $49 million is because of referendums that were approved by the voters.  He stated the next category is the Library MSTU of $21.9 million or 8.7% of the $252 million. 

 

Commissioner Voltz inquired if that is a voted on millage or is it General Fund millage; with Mr. Whitten responding it is the library millage; none of it is voted on; and from here on he will say tax rate as it is actually a library tax rate. 

 

Discussion ensued on General Fund, MSTU’s, special taxing districts, and 21% increase last year for four new libraries. 

 

Mr. Whitten stated the library tax rate is a tax rate that is applied Countywide, just like the General Fund tax rate.  He stated the next item is the Law Enforcement MSTU of $14.3 million; Mosquito Control is $7.2 million; and the Road and Bridge MSTU’s are $5.5 million, combining the six Road and Bridge MSTU’s.  He stated the next item is the Parks and Recreation tax rates; these are not the voted referendums; they were existing tax rates prior to the referendums being passed; and they are approximately $4.7 million.  He stated once they have reduced out all of the special districts or MSTU’s, the remainder represents the $154 million that is associated with the tax rate in the General Fund; and that is combined with other general revenue sources to fund Countywide services.  He advised the General Fund brings in approximately $154 million. 

 

Commissioner Scarborough inquired what is the difference between pages 7 and 8; with Budget Director Dennis Rogero responding the number at the top is the only change; and that is there so the Board will know that the remaining money they will be talking about is the $154 million. 

 

Mr. Whitten stated the $154 million is combined with other revenues that are received to make up the Countywide revenue resources of $203.8 million; and those are the revenues at 95%.  He stated it is $145 million from property taxes, $8.8 million from the communications services tax, $16.1 million from franchise fees, $23.3 million from the half-cent sales tax, and $9.5 million from the State shared revenues. 

 

Mr. Rogero advised at the lower right hand corner of the graph is the property tax at $145.8 million; and he put that in with the statutory reduction to show that from one slide to the next, without spending any money, the County has lost approximately $8 million to $9 million just from statutory reduction, which is the amount the Board is not able to budget.

 

Mr. Whitten stated general revenue is defined as the revenues from property taxes and the four other revenue sources; and they start with general revenues of $203.8 million.  He stated the Sheriff’s office transfer is $42.1 million, representing 20.7% of the total; the jail is $31.1 million, representing 15% of the total; the Parks and Recreation transfer is $22.6 million, which is not associated with the voted referendum items; Fire/EMS is $20.2 million; Facilities is $16.1 million; Housing and Human Services is $11.3 million; and the Property Appraiser is $9.1 million.  He advised Road and Bridge is $7 million; it was increased recently because of the swap out with Local Option Gas Tax revenues; expenses that used to be funded with Local Option Gas Tax are now funded with general revenue sources.  He stated the next item is the Tax Collector transfer of $6.9 million; mandatory Medicaid is at $4.4 million, which was increased recently because of the swap out with Local Option Gas Tax revenues; Transportation Engineering is $4 million; the Supervisor of Elections is at $3.8 million; Animal Services is at $2.8 million; and Courts is at $2.8 million.  He noted those are just the general revenue transfers for Courts, but there are other fees associated with the County’s obligations under Article V.  He stated Planning and Zoning receives a transfer of $1.9 million; the EDC receives $1.6 million; Emergency Management receives $1.6 million; and the transfer to other services totals $14.5 million. 

 

Commissioner Voltz inquired about the other services; with Mr. Whitten advising of administrative functions that are covered by the term “other services.”  Ms. Busacca stated Transit and Agriculture and Extension Services would be part of it; with Mr. Rogero advising the County Attorney’s office would as well.  Mr. Whitten stated staff listed the services that received the largest transfers; and other services are those that are not represented but receive general revenue transfers.  Commissioner Voltz inquired if salaries are included; with Ms. Busacca responding yes.  Commissioner Voltz inquired if all salaries are included; with Ms. Busacca responding no just salaries for agencies that are not listed. 

 

Mr. Whitten stated the next slide shows the budget by Countywide functions; they have been grouped into categories that would be understandable to the general public; and they include leisure service, public safety, transportation, courts and other charter offices, utilities, housing, development services, facilities, and other services, which includes those not represented on the previous charts.   

 

Commissioner Voltz stated it would have been nice to have percentages shown.  Ms. Busacca stated staff can do that.

 

Mr. Whitten presented a chart showing property valuation increases over the last five years; in FY 2002, the property roll was $19.74 billion dollars; and in FY 2006, the property roll is $39.38 billion, which is a little short of doubling of the property values over the last five years.  He noted staff has given the increase year by year; the next column shows the percent of increase year by year; and the next column shows how the County’s tax roll has changed and is moving more towards residential over the last five years.  He stated in 2002, the percentage of residential was 69.2%; and today the percentage of residential is 77.01%.  He stated the next chart shows the Countywide property valuations by new construction and increases in valuations from 2003 through a projection for 2007; the increase has been from $19.74 billion to $39.38 billion or an increase of 99%; and the chart breaks the valuation increases into what is attributable to new construction and what is attributable to increases in valuation. 

 

Commissioner Voltz inquired if it has gone up to 77% from residential, what percentage is from Save Our Homes and what percentage is not.  Ms. Busacca stated staff can tell homestead versus non-homestead; and she will get that number for Commissioner Voltz.

 

Commissioner Scarborough stated a person who has homestead exemption and Save Our Homes gets a bill showing the assessed value on the bill; there is also a taxable value on the bill; it is the taxable value that is locked into the 3% of the Consumer Price Index per year; and inquired when he looks at the value increase, does it reflect value increase in taxable value or assessed value; with Mr. Whitten responding taxable value.  Commissioner Scarborough stated there has been an increase more than that, which is not reflected; with Mr. Rogero agreeing. 

 

Mr. Whitten stated they do not have an answer to Commissioner Voltz’s question in terms of number of parcels; but approximately half of the $39.38 billion valuation receives the $25,000 homestead exemption.  He advised staff is researching that because the question did come up earlier.  Chairperson Colon stated she asked about that because it is an important number; and the misconception is incredible of what the number is.  Mr. Whitten stated staff has given the historical on the valuations; and now staff will provide an overview of the tax rate, starting with the General Countywide tax rate.  He stated in 2003, the General Fund tax rate was 4.4495 mills; the tax rate for 2004 was 4.344 mills, which was a slight reduction; and the tax rate for FY 2005 was 4.1278 mills, which was a reduction of 6.9%.  He stated the tax rate for FY 2006 was 3.6249 mills or a reduction of 12.2%; the tax rate for FY 2007 is 3.558 mills, which is a percentage increase of 6.4%; but that rate now funds the $20 million EMS transfer.  He stated the graph shows that the current General Countywide tax rate is actually lower than the tax rate from FY 1989.

 

Commissioner Voltz stated in 1989 the millage rate was 4.1520 mills; but it is irrelevant because the assessed values have gone up, so it is not like it is lower today because the County is collecting less or collecting more money.  She stated when people look at that, they may think the Board  is trying to say it has less millage so it equates to less money, but it does not.  She stated the taxable values have gone up, so the millage rate is not relevant.  Mr. Whitten stated it equates to less money because if the board had the millage rate remain the same, it would have actually called for more revenue for government and more taxes for the citizens; and displayed
a slide illustrating the point.  Mr. Whitten stated as the valuations have gone up, the part of the equation the Board controls has gone down.  Commissioner Voltz stated people ask if the millage rate is lower, why their taxes are higher; but she understands what Mr. Whitten is saying. 

 

Chairperson Colon stated it is a good point; people at home think the Board is increasing the millage; the Board has control over the millage; but it does not have control over what the homes will be appraised at, which is where there has been difficulty.  She stated citizens are asking the Board to lower the millage even more, but the Board does not know what the market is going to be like, so if anything that is where it is like the Board would be deceiving.  She stated the Board  is telling the truth; it is saying the millage is staying conservative; and commented on not going above the 3% cap.  She stated the Board will not know anything until June when it sees how the market is; that is difficult; and it is a double-edged sword because it means the money that is needed to provide services for the community is going to be going down.  She stated it is difficult for folks to get a grip on that; and she is glad the Board talked about it because it is confusing.  She stated the Board determines the millage; if it had remained at 4.4 mills, the citizens would have been very upset because they would have asked why the Board did not decrease the millage; and that is the part that is hard for folks to grasp.  She noted citizens are saying even if they downsize, it does not do them any good because their house is valued at $150,000, and if they downsize to a condo, it costs $225,000, so they might as well stay in their house; and this is what she hears every time the budget goes around. 

 

Commissioner Voltz stated it is amazing how other counties have not increased their millage for years, but they are collecting a lot more money because the assessed values have gone up. 

 

Commissioner Nelson stated one of the points to be made is that this cannot be done independent of the view that things cost a lot more than they did in 1989; they have shown the Board tried to keep the millage at or below what it was in 1989; that will be shown in the aggregate as well; and there has been a legitimate effort to try and control it because there are a lot more people in the County than there were in 1989.

 

Ms. Busacca stated she has a presentation that was put together by Fishkind and Associates that Dr. Fishkind will be presenting this week to the House of Representatives and the Senate; he makes that comment that between the years of 2000 and 2006, the Consumer Price Index (CPI) grew by 17%; however, the CPI measures mostly household purchases and local governments are purchasing items such as property insurance, health insurance, fuel, and law enforcement services that tend to increase at costs higher than the CPI.  She stated Dr. Fishkind uses the example of roads; the Board saw how much money the County spends on transportation; and since the year 2000, the highway and street construction index have risen 48%, so it is much higher than the CPI.  Commissioner Scarborough inquired if that is included in the packet; with Ms. Busacca responding no, but she will provide that information. 

 

Chairperson Colon commented on legislation by Representative Mayfield and Senator Haridopolos, addition to the percentage change in the CPI, and not comparing apples to apples.  She stated it is upsetting because it sounds good; the Board does not want to come across like it does not want to give savings to the folks in the community; but the truth is that it is difficult when someone from the outside wants to play Monday morning quarterback.  She stated if they
were in the Board’s shoes, she would ask if they would like it if they had a referendum to take away sales tax; that is what she had someone say to her; and the question was why not turn the tables around and say from now on the citizens of the State want to do away with sales tax.  Chairperson Colon stated it could be put on referendum in 2008; and inquired how the State would be run if they did away with sales tax.  She stated all of a sudden now everybody is looking at it a different way; it is easier when something is being done to somebody else; but inquired with no sales tax how would they fund everything under the State’s jurisdiction like correctional facilities.  She stated she knows it is not an easy job; but this is the first time she has seen the counties and the cities so together on one issue.  Commissioner Voltz advised they are all on the same page.  Chairperson Colon stated if there is anything positive that will come out of this, it is that they are all agreeing to the same thing.

 

Mr. Whitten stated the next slide shows the aggregate operating tax rate; the 2003 aggregate operating tax rate was 7.4 mills; in FY 2004, it was 7.4 mills again; and in 2005, it was 6.95 mills, which was a decrease of 6%.  He advised in FY 2006, it was 6.5 mills or a decrease of 6.5%; and the current fiscal year aggregate operating tax rate is 5.9181 mills, which is a decrease of 9.2% and lower than the rate in 1989.  He stated the significance of it being lower in 2007 than it was in 1989 is that there have been six voter referendums that have added to the composite rate; and the humps on the chart are primarily associated with the voted millages.  He stated this is different than the General Fund; this tax rate is a composite of other tax rates that make up the aggregate operating rate; the rate for 2007 is lower than the rate the Board had in 1989; and displayed a graph on which the referendum items were highlighted. 

 

Chairperson Colon inquired how much is that number; with Mr. Whitten responding the tax revenues associated with the voted millages are $48 million; and the budgetary impact is even higher because the tax revenues are paying debt service on bonds.  He stated the referendum items include EEL’s, Beach and Riverfront, Port, St. John, and the Firefighters referendums; and the fiscal impact to the budget goes beyond the $48 million that is collected in operating and debt tax revenues. 

 

Commissioner Nelson stated although the General Fund Countywide collection went up 6.5% overall, that is part of the calculation that actually went down 9%, so the net is actually a 9% reduction, not a 6% increase.  Ms. Busacca advised the primary reason it went up is because $20 million of EMS was put into the General Fund.  Commissioner Nelson inquired if the aggregate still went down; with Ms. Busacca responding yes, it still went down. 

 

Commissioner Voltz suggested looking at how much the County’s budget has gone up or down versus what the School Board budget has done; stated the School Board budget is much higher than the County’s; and it would be nice to see the percentages because when someone gets his or her tax bill, everything is on it.  She stated it is not just the Board of County Commissioners raising or lowering taxes; and it is really the School Board.  

 

Commissioner Scarborough stated what was even more interesting were the comparisons the Board received in the past showing the comparisons with other counties of the same size; some counties in the Panhandle are at their millage cap, but they look awful; there are other communities where everything is neat and nice, but the millage is way down; and the reason is the millage moves in an inverse proportion to the quality of the community, so as the County
invests in the quality of the community, it enhances values, which leads to a millage reduction.  Commissioner Scarborough stated it is complex to talk in those terms; but if the Commissioners look at the statistics, the best counties have the lowest millage and the worst counties have the highest millage.       

 

Mr. Whitten stated the next chart shows the Countywide operating tax revenues by new construction, valuation, and millage increases; and it also breaks out voted millages for the period from FY 2003 through the projected FY 2007.  He stated the operating property tax revenues have increased by approximately 60%; the valuations have gone up 99%; and the 60% increase includes the voted referendums. 

 

Ms. Busacca stated Dr. Fishkind asked 67 counties what their information was; he got response from more than 50 of those counties; and what Dr. Fishkind identified was that even the State gets ad valorem taxes in the form of what is called required local effort, which School Board’s must have in order to participate in Florida’s Educational Funding Program.  She stated Dr. Fishkind looked at the ad valorem growth in the State, the counties, and the cities from the year 2001 to 2006, which is comparable to what the Board was talking about; the cities had a growth in ad valorem revenues of 94%; the State had a growth rate of 68%; the average of the 58 responding counties was 62%; and Brevard County is 60%.  She stated even in comparison to fellow counties, Brevard County is less than average, and certainly less than the State and cities. 

 

Commissioner Voltz stated it is no wonder they are not going to touch the School Board taxes; and they will be allowed to go up and down as they will because the State gets part of that money.  Ms. Busacca stated that was actually in growth; and in the State of Florida, it was $3 billion over that period of time.

 

Mr. Whitten displayed a bar graph addressing revenues from 2003 to 2007; and explained the depiction of revenues attributable to new construction, the portion attributable to changes in valuation and millage, and the portion attributable to voted tax valuations and tax rates.  He stated in 2003 there was a revenue increase of approximately $13 million or $14 million; and approximately $4 million or $5 million of that was attributable to new construction.  He commented on the portions attributable to valuations, changes in the millage, and voted millages; and stated in the current fiscal year, the increase is primarily because of the change in funding for EMS and Fire. 

 

Chairperson Colon stated when the industry was doing well, the Board knew it was just a matter of time before it was going to bust; and one of the concerns is what will happen to all the homes and how will it affect the County.  She stated this year with permitting going down, it has affected the County because the County is cutting back in those departments that allow permitting; and inquired if there is any way of monitoring those kinds of dollars that are coming in or is there really no way of telling because of what has happened in the industry.  She stated the standstill affects the economy of a community tremendously because people are not buying refrigerators, cars, and all of that; and the effect is incredible.  She inquired if staff has any idea or is it premature to ask for those numbers.  Mr. Rogero advised in terms of property valuation figures, what is happening right now will not be seen until next year; the valuation figures the Board  will get from the Property Appraiser in a couple of months will be last year’s changes; so
the things that are happening in Permitting and Enforcement and Natural Resources in terms of how they will affect property valuation for tax purposes will not be known for quite some time. 

 

Commissioner Scarborough stated he has looked at a lot of tax bills that people have brought in; a lot of the assessed values have never fully reflected the market value; and Clerk of Courts Scott Ellis brings up the point that there can be a roll up under the TRIM as well as a rollback.  He stated that would only occur at the time those two came closer in line; the actual market value is when one sells a house; the assessed value is what the Property Appraiser puts on the house; and then there is taxable value that may be substantially different if there is Save Our Homes.  He stated there is still a large measure between where the actual market value is even though it is dropped; and inquired if Mr. Rogero concurs.  Mr. Rogero responded he agrees, which makes it more difficult to predict the downturn in the economy, data from permits, and things like that; and it is more difficult to predict what will happen in terms of valuations for tax purposes.  He stated any number of other economic factors will have a much more immediate impact, but in terms of valuations for tax purposes, that is the way of the future. 

 

Chairperson Colon stated the County will be getting that money coming in steady; at the meeting in her office, it was explained that construction was good, but it was not all; and so the Board  should not fear it as far as what would happen to the budget and how they will be able to continue the quality of life that the citizens are expecting.  She stated the fear was the County was depending too much on new construction; and what has been mentioned is that it will be steady because that is what they are assessed at and that is what the County will be getting from here on.  Ms. Busacca advised that is what the chart Mr. Whitten displayed said.  Mr. Whitten stated the chart shows new construction in black and valuations changes in green; what is shown in black this year becomes green next year; new construction has been steady; and new construction is a large part of the revenue stream; however, it does not paint the entire picture.  He advised the graph is designed to show what is attributable to new construction, valuations changes, and voted millages; and voted millages are approximately 17% to 18% of the tax revenues. 

 

Mr. Whitten displayed a chart; and advised the chart compares the increases or decreases in taxable property value and the aggregate operating rate from 2002 through 2006; and stated the tax rate has decreased by nearly 1.4 mills since 2002.  He stated in 2006 the increase in the valuations on the property roll over the previous year was over $8 billion; and the inverse is the operating millage decrease.  He explained the chart; and stated as the increases in valuations have gone up, the operating tax has gone down; and staff thinks the chart shows that the Board has been responsible and responsive to the increases in valuation, knowing that there are associated revenue increases, and therefore reducing the tax rate.  He commented on comparison of taxable value and aggregate operating tax rate, increase in gross numbers of the tax roll, and decrease in tax rate. 

 

Commissioner Voltz inquired if that is the aggregate operating millage; with Mr. Whitten responding yes.  Mr. Whitten stated the reduction from the tax rate of 2003, which was 7.40 mills and the current aggregate tax rate of 5.91 mills has resulted in a savings to the taxpayers of approximately $80.6 million; and if it had stayed at the 2003 level, the County would be collecting an additional $80 million in revenue and the citizens would be taxed an additional $80 million.  Ms. Busacca stated in addition since 2003, there has been at least one referendum so it
would have been even more because it included voted millage that could have been put into the General fund to use for other things, but was not.  

 

Mr. Whitten displayed charts showing actual tax bills from residents in the five Commission Districts; and stated they include homestead properties and non-homestead properties, and the representation is for the Board taxes ad assessments.  He stated in District 1, a homestead property in 2002 had a taxable value of $82,000; in 2006, the taxable value was $93,000; and the portion attributable to voted taxes in 2002 was $283 and in 2006, it was $168, so it had gone down.  He stated the 2002 Board taxes and assessments were $885 in 2002 and the 2006 Board taxes and assessments were $1,021. 

 

Commissioner Scarborough inquired when they say taxable value, is that per unit or gross.  Commissioner Voltz inquired is it the average price of a home.  Mr. Whitten responded it is the taxable value of the specific home.  Commissioner Scarborough stated he would like to get the figure as both mean and median. 

 

Mr. Whitten stated the taxable value is the assessed value minus any exemptions that are applied; the District 1 example for the non-homestead property in 2002 was a taxable value of $63,570; and it has more than doubled in five years to a taxable value of $144,310.  He stated voted taxes have gone up slightly; the Board can see the effect of the more than doubling of the taxable value on property taxes from $744.70 to $1,359.04; and it can also see the difference between homestead and non-homestead property.

 

Commissioner Scarborough inquired if the non-homestead property includes commercial and industrial properties as well; with Mr. Whitten responding they could be.  Commissioner Scarborough stated it would be good if that was segregated out; he does not think the commercial and industrial have the same increase in the marketplace as residential properties; and commented on the splitting in the trend between single-family and condos.  He stated he does not want to get into data overload, but if there is a blending of too many figures, they will not get a good impression of what is happening; and it appears from Florida TODAY that the condo market has taken a much greater dive than the single-family homes.  Mr. Whitten stated staff asked the Tax Collector for non-homestead versus homestead; and they are all residential samples. 

 

Commissioner Voltz stated she would like to get a commercial property example because those people are screaming the loudest that their valuations have gone sky high.  Commissioner Scarborough stated while residential has bounced, the commercial and industrial have not; and in Titusville there is a surge in the commercial building.  He stated there was an impact fee issue that came up with Target, Home Depot, and the restaurants; it seems to be shifting; and he does not know if that is an anomaly in District 1; with Ms. Busacca advising it is not.  Commissioner Voltz stated she is wondering if they are considering apartment complexes as commercial.  Commissioner Scarborough stated he would want to consider that as residential.  Commissioner Voltz stated they are considered residential, but they are rental properties, so it is someone’s commercial business.  Commissioner Scarborough advised of a project in Titusville where rental apartments were turned over to condos; people bought the condos because they wanted to flip them, but the market soured; so now the units are being rented.  He stated when there is one landlord, there is control; but when there are multiple owners of the units, there are
social problems occurring within and now economic problems.  Commissioner Scarborough stated some of the condo units are not really condos, but used to be rental units; and problems do not end, but just have babies.  Commissioner Voltz stated a gentleman at the Florida TODAY forum said he has a commercial property and his taxes have gone up 600%.

 

Commissioner Bolin inquired if the examples include those that are secondary homes; with Ms. Busacca responding the non-homestead examples could be one of those.

 

Chairperson Colon stated the ones that have come across her desk and the folks who have come to her office have secondary homes; a lot of those folks were trying to take advantage and be part of the prosperity that was going on; and now those folks cannot afford to keep up with those homes.  She stated that is the part that scares her regarding foreclosures; and commented on taking advantage of the situation, inflated prices on homes, homes going from $150,000 to $225,000 in six months, and Board being dependent on certain income to maintain quality of life in the community.  She stated it is frightening to know what is happening to those  markets; someone gave them the number of homes empty in the County was approximately 10,000; and those are pretty dramatic numbers.  She commented on the effect on banks, the economy, figuring out what is going to happen, and people with second homes not being rich.  Commissioner Voltz stated people with second homes have probably worked all their lives to get them.  Chairperson Colon stated in commercial, the small businesses are the cornerstone of the economy; and the Board does not want to hurt the small businesses; but it is 77% residential and 22% commercial when it was the opposite in the past.  Ms. Busacca stated part of that may be that the County is attracting more people who are retirees and may use a different service mix than people with younger families; so it may be seeing that kind of things which is not surprising.  She noted other counties are showing that the amount of their taxes from commercial has continued to decrease. 

 

Commissioner Voltz stated there is a class action lawsuit with the non-homesteaded property owners; they are going back four years in taxes; and inquired if Mr. Knox has heard anything else on that.  Mr. Knox stated it was just recently filed, so it has not progressed too far.  Commissioner Voltz stated that is something the Board needs to keep an eye on as it could hurt the County.

 

Mr. Whitten displayed a slide showing the District 2 homestead example; and stated in 2002 the taxable value was $110,230 and in 2006 the taxable value is $125,220.  He stated the taxes associated with the voted referendums have gone down from $383 in 2002 to $177 in 2006; what is shown is just the operating portion of the budget; and the Board can see the increase associated with the bottom line for taxes and assessments from $419 to $621 over a five-year period.  Ms. Busacca advised it is also reflective of the fire assessment change. 

 

Chairperson Colon inquired how Mr. Whitten came up with the numbers from each District and are they averages; with Ms. Busacca responding they are for specific homes. 

 

Commissioner Nelson stated his house is a classic example of the protection from Save Our Homes because it slowly crept up in terms of its value, but in terms of market value, it has gone through the roof. 

 

Commissioner Voltz stated here taxes have gone down this year; and explained that if the City of West Melbourne had begun to tax, her taxes would have gone down $200. 

 

Mr. Whitten stated the District 2 non-homestead example had a taxable value in 2002 of $64,110; in 2006 the taxable value is $138.090; and the taxes went from $665.82 in 2002 to $1,251.98 in 2006.  He stated the District 3 homestead example in 2002 had a taxable value of $61,000 and in 2006 was $70,240; and the taxes levied by the Board during that period went from $141 in 2002 to $98.44 in 2006. 

 

Commissioner Nelson inquired if the house was annexed; and advised that could have an impact because if it was annexed, all the MSTU dollars would be lost.  He inquired if it is strictly General Fund or what is all taxes; with Mr. Whitten responding it is Board taxes and assessments.  Commissioner Nelson stated if the property was annexed by a city, all the MSTU’s would be lost; with Ms. Busacca advising that is correct and could be a reason it went down.  Mr. Whitten stated the District 3 non-homestead example had a taxable value in 2002 of $28,990; in 2004 it was $45,200; and this is a property that probably was affected by the hurricanes as in 2005, the value is $26,600. 

 

Commissioner Scarborough stated these are not means or medians; they were randomly selected; and he is glad he was told that because this is an anomaly. 

 

Mr. Whitten stated staff just wanted to show what was happening in the Districts in regard to homestead versus non-homestead; and staff did not want to be accused of picking and choosing to present a particular perspective so it asked for random properties.  He stated the taxes in the sample went from $466 in 2002 to $912 in 2006.  He stated the District 4 homestead property example had a taxable value in 2002 of $91,870; the taxable value in the current fiscal year is $104,350; and the taxes went from $654 in 2002 to $580.41 in 2006.  He stated the non-homestead example had a taxable value that went from $83,770 in 2002 to $203,330 in 2006; and the taxes have gone from $830 to $1,598. 

 

Ms. Busacca stated these are excellent examples of the difference in valuations between two homes in District 4; the homesteaded property started with a taxable value of $91,000 and five years later was at $104,000; and the non-homestead property started at $83,000 and five years later was at $203,000, and that is completely valuation. 

 

Commissioner Scarborough stated he does not think the assessed values are representing the market values; whatever is being shown is probably a fraction of the actual market value; and some are not moving as rapidly as others, so there are all kinds of anomalies. 

 

Mr. Whitten stated the District 5 homestead example had a taxable value in 2002 of $97,150; in 2006 the taxable value was $110,200; and the difference in taxes was $937 in 2002 and $1,070.47 in 2006.  He stated the District 5 non-homestead example was valued at $52,000 in 2002 and at $137,000 in 2006; and the taxes in 2002 were $553 and in 2006 was $1,293. 

 

Chairperson Colon stated on the second line the 6.7% goes down to zero percent.  Mr. Whitten stated the taxable value did not increase.  Chairperson Colon inquired what happened; with Ms. Busacca advising it could have been as a result of the hurricanes.  Chairperson Colon
commented on seniors being hurt, living in a modular manufactured home worth $40,000 that is now worth $90,000 or $120,000, and trying to live on a tight income.  Commissioner Voltz stated in Barefoot Bay, those who had single-wide mobile homes and were hit by hurricanes, had to replace to a doublewide; and now their house is much bigger and they have been hit with taxes; with Commissioner Scarborough advising it is taxes and insurance.

 

Mr. Rogero stated staff looked at ten random properties; and if another ten samples were pulled, they would wind up with different results; but of those ten properties, seven either experienced a tax decrease over the five years or their tax increase was actually less than their increase in value.  He stated the bottom line is property that did not have homestead exemption still ended up paying less Board-levied taxes in relation to their increase in valuation; so not only are there homesteaded properties that one would anticipate would spend less money because their valuations are capped, but there are non-homesteaded properties that also paid less.             

 

Mr. Whitten stated there has been a lot of discussion regarding what is done with the annual increases; and displayed a slide showing examples of what has been done with the increased funding from year to year, starting with FY 2003 when the increase was $9.5 million. 

 

Commissioner Nelson inquired what calculation is represented by the $9.5 million; is that assessment fees; and is new construction taken out.  Mr. Whitten responded it is a raw number in regard to the increase and the tax revenue; and $9.5 million represents the difference between the 2003 budget and the 2002 budget.  Commissioner Nelson inquired if it is not based on value generating x amount of dollars, but where the budget was; with Mr. Whitten responding it is just to show the Board some examples of what it has done with those dollars.  Mr. Rogero stated the numbers represent only those costs associated with service enhancements and do not include any cost associated with maintaining existing levels of service. 

 

Mr. Whitten stated with the $9.5 million, the Board funded patrol deputies, start-up for referendum projects, maintenance of libraries, ambulance services and rescue units; in 2004, the increase was $8.7 million, which funded landfill operation increases, increase in the jail medical contract, increases in compensation for Fire Rescue staff, expenses for two elections, new patrol deputies, and new ambulance service and rescue units; and in 2005, the increase was $11.7 million.  Mr. Whitten noted the increase is also attributable to voted revenues, so it is a representation of all revenues including voted and non-voted; and in 2005, the $11.7 million increase funded 89 jail positions, the touch screen voting equipment, Medicaid payment increase, jail repairs and renovations, Mosquito Control equipment, vehicles for the Sheriff’s office, and additional ambulance service and rescue units.   

 

Commissioner Voltz advised the touch screen voting equipment was mandated.  Supervisor of elections Fred Galey advised it was a federal force feed. 

 

Ms. Busacca stated Dr. Fishkind’s report mentions that the budgets for Constitutional officers are included in County’s budgets and that significant growth in spending by Constitutional officers has pushed up County spending; Dr. Fishkind notes that is true especially of the Sheriff, which is largely related to 911 concerns as well as other public safety concerns; but Statewide, that has increased $1.3 billion.  She stated the increases in growth of the Charter or

Constitutional officers throughout the State has been 61% for Sheriffs, 54% for Tax Collectors, 120% for Supervisors of Elections, and 43% for Property Appraisers; so the impact of Charter officers and what they are being required to do because of security concerns as well as federal and State mandates are a significant part of the County budget; and that is true not just for the Board but for other agencies Statewide. 

 

Mr. Whitten advised the increase for 2006 is $22.1 million, which is being used for utility loan repayments, disaster reserves and equipment, an ambulance rate increase associated with increased service levels, start-up for referendum projects for operating and capital, operation of tents at the jail, additional fire engines and fire station equipment, replacement of grant funding for deputies, and supplement of Transit Services budget.

 

Commissioner Voltz inquired if the ambulance rate increase is related to the Micco issue; with Ms. Busacca responding that is correct. 

 

Mr. Whitten stated in 2007 there was an increase of $18.5 million; $2.2 million is for the jail expansion; and there is funding for the swap between Local Option Gas Tax and General Fund, fire engines and replacement package and additional funding of Transit of $1 million to continue or enhance the current service level.   

 

Commissioner Voltz stated she would like to touch on the additional funding to relieve the Gas Tax; the Board was taking LOGT money and spending it on Road and Bridge, which the General fund should have been paying for; and now they are just putting the LOGT back on the roads where it belongs.

 

Mr. Whitten stated the next slide is concerning the annual payments the Board makes for mandated services and functions; and they include Medicaid at $4.4 million, pretrial detention of juveniles for $3 million, and courts at $2.8 million, which is not all the funding provided to courts to meet the Article V requirement.  He continued other payments include the Comprehensive Plan function, Baker Act at $1.7 million, the Medical Examiner function at $1.6 million, continuing health care at $200,000, hospitalization of arrestees at $125,000, child protection team, indigent burials, jail expansion, additional ambulance personnel and equipment at $600,000, maintenance for libraries of $600,000, and additional funding for the EDC of $600,000.  He advised of funding for construction and renovation of libraries, utilities equipment, elections operations, mosquito impoundment, the Sharpes Community Center, referendum compensation and benefits, and court security deputies.  He stated there are some significant property tax proposals. 

 

 

 

County Manager Peggy Busacca stated this morning Lobbyist John Thrasher and Leigh Holt had a conference call to advise the House has already passed the property tax proposal through the first committee; they expect two weeks of adamant discussion; and the hope is this could be voted on perhaps as early as next week, at which time the House Bill would go to the Senate.  She stated the Senate has not yet put together a formalized proposal so it has nothing to talk about formally; but there have been many bills put out.  She stated the Board has a paper
listing all of the property tax reform bills with brief descriptions; it entails 18 pages of separate bills relating to property tax; and the reason it is late is because it has been changing so rapidly and staff wanted to provide the latest information.  She stated in addition there is an ad valorem bill that has just been filed that talks about millage rates; it is the newest House proposal; and it provides that ad valorem tax rates may not be levied in excess of the millage rate equal to the rollback rate as of 2001. 

 

Commissioner Nelson inquired if the State is going to roll back gas prices to the 2001 prices; with Ms. Busacca responding she does not think so.

 

Ms. Busacca stated staff would like to go over the proposals briefly and suggest at the next budget workshop, a phone briefing be scheduled with Mr. Thrasher.  She stated in two weeks a lot will  happen; Mr. Thrasher has also suggested any time a member of the Board can go to Tallahassee, it seems to have a great deal of impact to have one elected official talk to another elected official about the impacts of the proposals.  She stated staff will be putting together a brief synopsis of the information the Board has seen today to provide to the Legislative Delegation so it can understand more about it.  She stated staff does not have a good handle on many of the proposals because they are moving very quickly; Mr. Thrasher advised he feels certain there is going to be tax reform this year; there is talk that if there is going to be a constitutional amendment, the election may be as early as September; and it will take a 75% vote in both the House and Senate to have such election.  She stated Mr. Whitten will go through the proposals; and then there can be discussion about planning for the year in terms of cutting services or doing something to start saving money, and for a plan for next year. 

 

Chairperson Colon inquired if there is a special election, would the State or the County be paying for it; and advised an election in Brevard County alone is approximately $700,000.  Ms. Busacca advised the State would pay for it.  Chairperson Colon noted if Brevard County alone is $700,000 and there are 67 counties, anyone can do the math; but the Legislature is talking about saving taxpayers’ money.  She stated it is incredible to see that; she knows what the State is trying to hit the local governments with; and inquired what are some of the things being offered to offset the damage.  She commented on unfunded mandates, increasing the sales tax, and whether the State has a plan. 

 

Mr. Whitten stated he is not sure the State has revealed its plan on this; the first slide says the State is going to offset with sales tax revenue; but the sales tax revenue currently received from the State is only $9 million.  He stated the first proposal contemplates rolling back the rates; it says to go to the 2001 rollback rate; and that becomes difficult for staff because the rollback rate in 2001 is lower than the current aggregate operating rate.  He stated from a staff perspective, they are not sure if the State is saying go to a rate that gets the County the same amount of revenues it had in 2001; the black and white of the language says to go to the rollback rate of 2001; and it becomes difficult to analyze the proposals, so staff is not sure about the offset.  He stated the first proposal talks about rolling back the rates or valuations to a 2001 level and adjusting that by a Consumer Price Index and offsetting that with sales tax revenue; and the Florida Association of Counties advises that is a revenue loss and expenditure reduction to the County of $73.4 million. 

 

Ms. Busacca stated what they are talking about doing is effective July 1 of this year; it is possible the County would not see those increases, if the electorate decides to increase the
sales tax, until after some lag time; and it could be as long as 18 months before the County is given that information.  Ms. Busacca stated that is a 29% decrease; and based on the average County employee’s salary, it is a decrease of 1,400 positions out of a total of 2,700 positions, so this would impact not just County agencies, but Charter officers and everyone.

 

Commissioner Scarborough stated the Board has been told by certain Charter officers that it cannot cut their budgets.  Ms. Busacca stated Mr. Thrasher advised this morning that is does not appear that Charter officers are exempt; staff also asked about referendum approved millages, such as EEL’s or the Parks Referendums, and Mr. Thrasher said they have not been discussed at all.  She stated staff does not know any of that; but the Legislature has some sense that there is indebtedness of local governments. 

 

Commissioner Scarborough stated the County would default on its bonds; and that would be interesting.  Commissioner Voltz advised every county would have to do it.  Chairperson Colon stated the Legislature has not thought this out; and it is outrageous.  County Attorney Scott Knox stated that will not happen.  Ms. Busacca advised there is a recognition that there is debt service and a need to pay the bonds. 

 

Mr. Whitten stated the Legislature talked about applying this to the operating aggregate, so it has excluded debt, but not the levies, revenues, or tax rates that were approved by the voters; and that may not be an issue for the 66 other counties, but in Brevard County there are at least six or seven of the operation millages that were approved by the voters.  He stated the composite proposes rolling those rates back to the 2001 level, so it reduces the amount of revenues the voters voted upon themselves to actually operate the parks and other capital improvements that are being built. 

 

Commissioner Scarborough inquired if Moody’s or any of the rating services have put a credit watch on the State; and commented on the treatment of the County by Moody’s when it was involved with the COP issue.  Finance Director Steve Burdett stated there is the whole State to deal with; and it is a little preliminary in the legislative process to hear anything.  Commissioner Scarborough stated if counties do not have the revenues, it is going to affect a lot of things; credit ratings can drop drastically if there are no revenues; and he is surprised that Moody’s is not watching. 

 

Chairperson Colon stated Mr. Whitten said the County would not be getting anything back within 18 months; and inquired what would the County be getting back and what percentage would it be based on; with Ms. Busacca responding it would be sales tax; right now the Legislature is talking about going from 6% to 8.5%, and then giving local government some portion of that; but it has not said whether it would be the total 2.5 cents.  Chairperson Colon stated the State is taking away $73 million; but the County does not know what it is getting back; with Ms. Busacca responding that is correct.  Chairperson Colon commented on talking to a Representative from Miami-Dade County last week, taking away $76 million from counties but giving back $26 million, and Representative not knowing where the $50 million difference would come from.  She stated her point is the Legislature is putting on a show for the community and saying how much it cares about the community; and it sounds good and fiscally conservative; but based on
what she is reading and the emails she is getting, it is turning into a partisan issue, which is disgusting.  Chairperson Colon stated the legislators are negligent because they are not advising the County Commissioners what they propose and discussing it; the County Commissioners are hearing about it once the legislators are in Tallahassee and there are no Commissioners around to explain how it is going to affect the local governments; and that is not fair.  She commented on unfunded mandates; and stated she does not want to try to figure out what the Board wants to cut; she does not even want to go there; the Board will cross that bridge when it gets there; but to go through that exercise now would be a waste of time.  She stated it will not just be Brevard County in the hole if that happens; it is going to be everybody; and it is not little numbers like $5 million or $6 million; but they are talking about large chunks of money. 

 

Commissioner Voltz stated if they ask the voters if they want to do away with property taxes, who would not vote for it; but they need to understand the consequences.  She stated they may need to do way with some things; but the bottom line is that people will need to decide with education so they will know what is going to happen.  She stated right now they do not know what is going to happen, so it is difficult.

 

Chairperson Colon stated the only legislators who seem to be sensitive to the issue are those that are former mayors or county commissioners; they are the only ones who understand how complex the issue is; and the majority are a bit clueless.  She stated the ones who have been in the trenches with local government seem to understand the magnitude of what is coming out of their mouths; but the other ones just say there is a lot of fat; and recommended they work on this together. 

 

Commissioner Voltz suggested giving all the mandates back to the State.  Commissioner Bolin stated if the Legislature is going to cut down $73 million, the Board should ask which of the mandates the County must do and which it can give back because it does not have the money to do them.  Commissioner Voltz stated they have local control; it is up the Board; and it can spend the money any way it wants.  Commissioner Bolin stated the Board will have to say it is not going to do some of the mandates.  Commissioner Voltz stated the State is great at telling local governments it has to do things but not providing the finances.

 

Commissioner Scarborough stated he does not think the Board wants to go against the State; and advised of comments he made when the Article V issue came up that resulted in his being scared of what the State was going to do to the County.  He advised the State has the control; the County is not going to win by fighting the State; and the way it is going to win is by the State understanding it is in its best interest to act intelligently because if the State collapses, it will be on the Legislature’s neck.  He stated eventually there will be credit watches on the entire State; the Wall Street Journal will be talking about Florida being in collapse; and then the Legislature will catch on.

 

Commissioner Voltz commented on the Legislators messing with the counties, having the same constituency, and cutting property taxes. 

 

Commissioner Scarborough stated the County has an ongoing operation; some of it is mandated like providing space for the Public Defender; there are Constitutional officers; and
there are certain demands under Comprehensive Plans and Law Enforcement.  Commissioner Scarborough stated it is not like the Board is making all these discretionary decisions; most of it is trying to meet the demands that are imposed on it; and commented on the way Florida is viewed, loss of ability to borrow, and collapse of the State. 

 

Chairperson Colon stated the Board has been trying to be discreet and careful about what it says because it is supportive of the Delegation; it does not want to say anything wrong or not give the Legislators credit because it is a very difficult job; but each Commissioner has a responsibility because they are not just elected officials, but also Brevard County residents.  She stated this will affect the quality of life; and that is the part that she cannot comprehend.  She stated she watched the Legislators on television; they looked and sounded good; and if she was not an elected official, she would have been saying, “way to go”; but she is looking at the numbers and something does not add up.

 

Commissioner Nelson stated there is a problem; the Board adopted a Resolution saying it recognized the divergence between property values and indicating the Board wanted to work with the Legislature to deal with it; the Legislators agreed; but they then went to Tallahassee and threw the Board under the bus.  He stated the Legislators are from the community; and expressed disappointment that people with whom the Board has worked for years have acted like the Board does not exist.  He stated the Legislators have made comments about how the Board spent money; Tony Sasso of the Cocoa Beach City Council asked Senator Mike Haridopolos to show him where the City of Cocoa Beach misspent money; and all he got was a thank-you letter, so it has become about the sound bite and not about the reality of what is going to happen.  He stated the cut being proposed is horrific; $73 million is greater than the budget increases for the last five years; and this penalizes Boards that have done the right thing.  He stated before he and Commissioner Bolin were on the Board, it was trying to do the right things; the millages were going down; important services were being funded; and they funded $30 million for the Sheriff over the past five years.  He commented on the Board being responsible, giving increases to employees, and no gross misuse of money.  He stated there is a problem that needs to be dealt with; the Board wants to be part of it; and inquired what has the Board not done that it should have done to address the question.  He stated the Legislators are in Tallahassee acting like they have all the answers; the fact that there are 18 pages of possible solutions should scare everybody because it means they do not have a clue what the answer is; and what it will come down to is whatever paper lands on top.  He stated he was hesitant to go to Tallahassee, but he is angry enough now. 

 

Chairperson Colon stated it is almost like the Legislature is trying to divert the insurance problem; it was supposed to be handled in Tallahassee with all the special meetings; it sounded good and people are patting themselves on the back; but there were 200% to 300% increases and now they are giving a 20% discount and savings, so something does not add up.  She commented on diverting attention, local government not handling insurance, hypocrisy, inviting Legislators to attend the meeting, six-year trend, and operating millage going down. 

 

Commissioner Voltz stated the cost of services has gone up tremendously; and if the Board had kept the same dollar amount within each of the budgets for the last six years, it would have basically been going backwards. 

 

Commissioner Scarborough commented on having less employees with a greater population, keeping things at the same budget level, and decrease in services.  Commissioner Scarborough stated the question is whether the County wants to pay for it or just have degradation of services; and he has not heard anyone willing to go in that direction yet.  He stated he is interested in the things that other counties are doing; and commented on freezing salaries, hiring freezes, and not opposing actions to keep the County solvent.  He stated it is better to take preventive action and find it does not really negatively impact the County than to go ahead with business as usual.  He stated since it is a Statewide problem, he would like to know what other counties are doing and where they are in the process to help him understand the discussion the Board needs to go to.  He stated he would hate to be the only County that is not doing a hiring freeze or not freezing wages; but by the same token if other counties are able to carry on business and Brevard County is not because it did not do things right, that is not good either.  Ms. Busacca stated several counties have started freezing of positions and have stopped construction projects that are not in process; and in the case of Brevard County, the libraries are not very far down the road so this would be the perfect opportunity to stop them because the County may need the money that was set aside as operating money next year.  Commissioner Scarborough stated if the money can be used for operating, that is fine; and commented on promising people that money from the Parks and Recreation referendum would be used for projects.  He stated it would be ill advised to walk away from those projects; but he hears what Ms. Busacca is saying with the libraries.  Ms. Busacca commented on deferring expenditures for equipment and cutting or deferring services.  Commissioner Scarborough stated the County could start deferring things until it gets a better picture; with Ms. Busacca advising that is the kind of thing staff would like to know if the Board is interested in doing.  Commissioner Scarborough inquired what are other counties doing currently; with Ms. Busacca responding those are the kinds of things that other counties are doing.  Commissioner Scarborough inquired if that is a lot of counties or just a few; with Ms. Busacca responding the larger to mid-sized counties are taking those actions; the smaller counties do not have much to do because they basically fund the Sheriff and EMS and not much else.  Commissioner Scarborough stated he is not ready to go there today; but the Board needs to understand because if other elected officials who are similarly situated are moving there, they are not doing it because they want to.  Ms. Busacca stated staff will identify what other counties have done and what counties they are.  Commissioner Scarborough stated it would be great if staff could put together a report. 

 

Chairperson Colon stated it is a shortage of $73 million; and inquired if the things being discussed will equal that amount; with Ms. Busacca responding no.  Chairperson Colon stated it will be nowhere near $73 million; it will probably come up to $500,000 if the Board is lucky; and commented on mandated courthouse expansions and impact on municipalities that are going through the same thing as the counties. 

 

Ms. Busacca stated if the Board approves beginning construction on the libraries and next year does not have the money to operate the existing libraries, but has bonded for construction of a new library, someone is going to wonder what the Board was thinking.  Commissioner Nelson stated Ms. Busacca is talking about building it and closing it.  Ms. Busacca stated there are some things the Board may have to do. 

 

Commissioner Scarborough stated the Board is not disagreeing; he does not want to just nickel and dime; but he does not want to hurt things.  He stated one of the libraries is in his District; a
lot of people are very excited; but he would be ill advised to say he does not want to see the report and talk about it.  Ms. Busacca stated that is what staff is hoping to do on the 20^th; she would like to know what kind of information would be useful to the Board  because there are two things that have to be done; and inquired if the Board  wants to do anything with the current budget and does it want to give guidance as staff begins to plan for the future budget.  Commissioner Scarborough stated in future budgets, the Board  has a little bit of squirm room because it will know where it is going to go by the time it sets those budgets.  Ms. Busacca stated they are in the budget planning process now.  Commissioner Scarborough stated he understands Ms. Busacca may want to run a dual course.  Ms. Busacca commented on giving notice to Charter officers, County agencies, and outside agencies of the kind of measures that may be necessary and that there may not be any additional money for the outside agencies. 

 

Chairperson Colon inquired if Ms. Busacca said this could be heard as soon as next week; with Ms. Busacca responding yes.  Chairperson Colon suggested the Board  wait to find out then versus trying to go ahead.  Ms. Busacca stated staff was hoping to provide whatever information would be useful at the next workshop when it will have some sense of what the House of Representatives is doing; and Mr. Thrasher can be scheduled to talk to the Board  via telephone. 

 

Commissioner Nelson stated it would be helpful to have a list of major capital projects that will require additional operating funds; that would be a start; and those are fairly sizable numbers in terms of impacts.  Commissioner Voltz stated if the Board looks at cutting SCAT, it is talking about not providing a ride to work to a lot of people.  Commissioner Nelson stated that is too far down the road.  Commissioner Bolin advised there is already some obligation that has been made; with Commissioner Nelson advising it involves federal dollars.  Commissioner Bolin stated the Board is already committed on that.  Ms. Busacca stated staff did not want to presume that and felt it was important for the Board to talk about it as it is a large issue.   

 

Chairperson Colon inquired if the referendum is exempt or does staff not know; with Ms. Busacca responding staff has not been told that the referendums are exempt.  Commissioner Nelson stated the crazy part is there is an operating piece on those that will probably not get protected even though the full millage was voter approved; the operating piece still shows up under the aggregate and is controlled by that; so literally, it could be built and closed.  Ms. Busacca stated also if there is a referendum that did not exist in 2001, they do not know what will happen with that.  Commissioner Voltz stated that is the problem; it would be different if the Legislators could sit down with the County Commissions and go though the process to understand what the local governments are doing; but they go to Tallahassee and hear what everybody is screaming at, which is that property taxes are too high, so they are going to make a bad decision.  Chairperson Colon commented on the Legislators going to Tallahassee, capping property taxes, preventing huge percentages of increase, Commissioners agreeing with original discussion, Board having no control over appraisals, what happened to the market, and eliminating property taxes.  She stated the Board agreed to a cap so someone would not go from paying $800 in taxes to a bill of $1,800; the Property Appraiser has just been doing his job; and it is the ones in Tallahassee who are saying they need to do this. 

 

Commissioner Nelson stated the sad part is the Legislature cannot even say how it is going to benefit the individual other than to reduce taxes; but if it reduces his taxes by $100, but the County has to close libraries and parks, that is not cost effective.  He stated if they are going to wait until it all sorts out, then there are going to be angry constituents because suddenly it will be like they saved someone $100 but took away all the things he or she enjoyed in the community. 

 

Commissioner Scarborough stated it is not just going to be libraries and parks; it will be very profound; and commented on hiring freezes being a random hit and leading to dysfunction in the County.  He reiterated it may be necessary to take drastic action; and everybody wants to know what others are doing.  Ms. Busacca inquired if there is any other information that would be useful to the Board  to begin to talk about this in two weeks.  

 

Commissioner Voltz stated the Board needs to look at what projects are out there, what things are started, and where the County has not spent money yet.  Commissioner Bolin stated she would like to include in that any commitments made to Constitutional offices. 

 

Chairperson Colon stated the main thing is educating the Delegation; and requested Ms. Busacca list the kinds of impacts and send that information to the Delegation so they cannot say they are not aware of the impacts.  She stated it is crucial to educate the Legislators on the kinds of projects that will be affected by their actions; and it would be helpful to send that information to their offices.  She stated the Delegation has always been proactive and willing to work with the Board; they always worked as a team; and what is happening makes no sense. 

 

Commissioner Scarborough stated the Board has talked about deferring construction projects because it would involve additional personnel; but the new Mims-Scottsmoor Library would just be a transfer person and not new personnel.  He commented on the Board reversing its decision to build and going back to repair at a lesser cost, the library being dilapidated, expending funds to keep existing libraries open, parks, and finishing Chain of Lakes Park with no need for additional personnel.  He stated he does not know that stopping construction is gong to directly relate to a reduction in every case.  Ms. Busacca stated it is not correct to allow a half-completed structure to sit there and deteriorate; and the County will have to finish structures if it is in the middle of it.  Commissioner Scarborough stated if they do not finish the Mims-Scottsmoor Library, it will be necessary to take the dilapidated modular that was moved there years ago and refurbish it before it falls apart; but it would be a lesser cost, although there would be a larger risk that the County would have to replace it later.  Ms. Busacca stated it is the same issue in Palm Bay.  Commissioner Scarborough stated Palm Bay is already there, so there may be a minimal increase in operating; but it is a lot more complicated; and commented on dysfunction of the system.  He stated a dysfunctioning system is always more expensive to operate; so operational costs are a factor, and taxpayers will pay more for the quality of what they get. 

 

Commissioner Voltz stated people feel that the Board is making a threat that if property taxes are cut, then certain things will happen.  She stated there was a large parcel in Micco with a request to rezone; many people said not to rezone; and she said there was the possibility the property would be annexed into the City of Palm Bay.  She stated she was told that was a threat and could not happened; but it is exactly what happened. 

 

Chairperson Colon requested Ms. Busacca provide the Board with the requested information.  Ms. Busacca stated it was her intent to modify the presentation the Board had today to make it shorter, and provide it to the Legislative Delegation; and they will also talk about the impact to the current budget and what would not be funded.    

 

Commissioner Voltz stated she is going to Tallahassee on March 20, 2007; but Florida Association of Counties advises there is a meeting tomorrow or Friday and local government representatives need to be there.  Commissioner Scarborough inquired if Chairperson Colon is free to travel to Tallahassee immediately; with Chairperson Colon responding absolutely. 

 

Motion by Commissioner Scarborough, seconded by Commissioner Nelson, to authorize Chairperson Colon or any other Commissioner to go to Tallahassee. 

 

 

Discussion ensued on travel to Tallahassee, commercial flights, need to be in Tallahassee, Dr. Fishkind’s presentation to the House and Senate showing costs and impacts, and Legislative Day in Tallahassee.

 

Commissioner Scarborough advised the motion is for travel to Tallahassee any time a Commissioner wishes to go.  Commissioner Voltz stated the Board took that action previously.

 

Chairperson Colon advised the motion makes it clear; and called for a vote on the motion.  Motion carried and ordered unanimously.

 

 

Ms. Busacca inquired if the Board would like Mr. Whitten to go over the other options; with Commissioner Nelson responding no.  Mr. Whitten stated if today’s presentation has been helpful, staff will be condensing it for the folks in Tallahassee as well as developing something to be shown on Space Coast Government Television or as a press release. 

 

 

 

Assistant County Manager Mel Scott stated there is no other way to address this in front of the Board because the Contract will expire on March 15, 2007; and requested the Board consider extending for 90 days a Contract that is pending right now, which would be for part of the entrance and the trailhead for the Chain of Lakes Park. 

 

Commissioner Scarborough inquired if Mr. Scott is talking about the Feguer property; with Mr. Scott responding yes.  Commissioner Scarborough stated he clarified the motion at the regular meeting on March 6, 2007.  Mr. Scott advised there is something that is coming up in the wells, which has been discussed; the gentleman would also like a $10,000 potentially non-refundable deposit because he has vacated the property and entered into a lease for a year, and he thought they would close on this, but there is well contamination.  County Manager Peggy Busacca stated the owner is currently living on leased property; he was expecting to use the closing money for expenses; and now the County has extended the Contract.  Commissioner Scarborough stated many times a contract says that once entered into, there is an obligation to
convey property in a certain condition; and inquired if the Contract needs to be amended or is he bound by it regardless.  Assistant County Attorney Christine Lepore responded the owner is not bound to clean up the property.  Commissioner Scarborough stated the County just has the option to get out of it; with Ms. Lepore responding that is correct.  Commissioner Scarborough stated it would be wise to take the requested action; it is like an option to hold it so the County can be sure that what it is buying is not overly contaminated; it would be $10,000 well spent; and the money would come from the District 1 Referendum Funds. 

        

Motion by Commissioner Scarborough, seconded by Commissioner Voltz, to authorize a $10,000 nonrefundable deposit related to extension of the Contract with Donald R. and Marjorie R. Feguer for property needed for the Chain of Lakes Park Project, with the funds to come from the Referendum Fund for District 1.  Motion carried and ordered unanimously.

 

 

 

Assistant County Manager Stockton Whitten inquired if the information and how it was formatted and presented was helpful to the Board; and are there any suggestions for improving it. 

 

Commissioner Bolin stated she likes the idea of having the amount change as each is subtracted out; but recommended the color be changed because red is difficult to read.  County Manager Peggy Busacca stated she agrees.

 

Commissioner Voltz stated since Chairperson Colon is going to Tallahassee tomorrow and several other Commissioners also may go, there should be an itemized list of what could potentially happen, the mandates the County has, and the bond issue.  She stated everyone agrees there is a need to reduce property taxes; nobody thinks they are too low; but the County’s Representatives should at least know how it is going to affect their constituency.  Ms. Busacca stated staff can do that; and advised when she asked Leigh Holt to call when she had good news, Ms. Holt advised she would talk to her in about three months.

 

 

 

Finance Director Steve Burdett stated he erred on Commissioner Scarborough’s earlier question; the rating industry has issued a report on the proposed legislation being presented in the State of Florida; and he is also on the Finance Officers Legislative Committee, which has discussed the issue. 

 

Commissioner Scarborough stated if the financial markets respond in the way he thinks they will, it would mean the collapse of Florida’s capacity to borrow; and he does not think the Legislature can walk away from that.  Mr. Burdett advised he will send the rating agency’s report to everyone. 

 

 

 

 

Upon motion and vote, the meeting was adjourned at 3:35 p.m.

 

 

                                                                        _____________________________________

JACKIE COLON, CHAIRPERSON

                                                                        BOARD OF COUNTY COMMISSIONERS

ATTEST:                                                         BREVARD COUNTY, FLORIDA

 

 

 

_____________________

SCOTT ELLIS, CLERK

   

          (S E A L)