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Draft Min Special Called Meeting 9-17-07MINUTES OF THE SPECIAL CALLED MEETING OF THE ATLANTIC BEACH CITY COMMISSION HELD IN THE CITY COMMISSION CHAMBER AT 6:30 PM ON MONDAY, SEPTEMBER 17, 2007 PRESENT: Mayor Donald M. Wolfson Mayor Pro Tem J. Dezmond Waters, III Commissioner Mike Borno Commissioner Jamie Fletcher Commissioner Sylvia Simmons ALSO: Jim Hanson, City Manager Alan Jensen; City Attorney Donna Bussey, City Clerk The meeting, which was held for the purpose of discussing the following items, was called to order at 6:30 p.m. by Mayor Wolfson. 1. Public Hearings on adopting a Tentative Millage Rate and adopting Ordinance No. 20-07-87 establishing the Operating Budget for Fiscal Year 2007/2008. AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER 30, 2008. Mayor Wolfson stated the first item to be considered is adoption of a Tentative Millage Rate. The millage rate is 2.9974, the tentative millage rate is 2.9974, and the rollback rate is 2.7523. The tentative millage rate is 8.91 % higher than the rollback rate. The purpose of the increase in ad valorem tax revenue is to maintain adequate funding for the existing level of services at anticipated increased costs and to maintain the City's infrastructure. Motion: Adoation of the tentative millage rate for operating purposes of 2 9974 Moved by Borno, Seconded by Waters Mayor Wolfson opened the floor to the public hearing. Norman Ray Brown, 523 Clippership Lane, spoke in opposition to the proposed millage rate referring to figures published in the Times Union in June which indicated for the five year period ending in 2006 that Atlantic Beach increased property tax collections by 65%. He stated during the same period inflation increased 13%, therefore, Atlantic Beach has increased taxes five times the rate of inflation. Charlie Stambaugh, 1178 Ocean Blvd., spoke in opposition to the decision by the Commission to override the roll back of the property taxes and asked them to reconsider. Jamie Fletcher left the meeting at 6:39. Jamie Fletcher returned at 6:40. September 17 2007 SPECL~L, CALLED COMMISSION MEETING page 2 No one else from the audience spoke so Mayor Wolfson. closed the floor to the public hearing. Mayor Wolfson explained the reasons for the Commission's decision to not roll back the property taxes. He further explained the Commission approached this in a way that would help the citizens of Atlantic Beach the most stating they wanted to make sure the citizens would have the maximum benefit of being able to take deductions for their income tax. He stated the way this is set up, the millage and property taxes can be deducted from income taxes, whereas if the Commission had assessed fees against the citizens, as the City of Jacksonville is doing, that is not tax deductible. Commissioner Borno stated this proposal by the legislature to roll back the taxes doesn't relieve anybody coming into the market right now. He also stated if the referendum goes through, within 10 years homeowners will be paying anywhere from $50,000 to $75,000 more taxes than they would have under Save our Homes, which they are currently under. He believes the legislature failed their job and also took away home rule, allowing the cities to determine what they need to be able to run their city. Commissioner Waters explained Atlantic Beach is not raising the millage. He stated Atlantic Beach charges 2.9 mills, Jacksonville charges 7 or 8 mills, and the School Board charges 10 mills. The fact that taxes on homes in Atlantic Beach are extravagant has very little to do with what Atlantic Beach takes in, it has to do with what Jacksonville and the School Board take in. The bulk of the millage goes to support Jacksonville as our County and the Duval County School Board. He believes the next Commission will be able to go below 2.9 mills, if Tallahassee is fair and just about this, because we do cream a little bit more off when property values keep increasing. He stated, however, there is some indication that property values are not going up any further, that they are actually starting to drop, even in Atlantic Beach. He agreed with Mayor Wolfson that the Commission acted responsibly in their decision about the millage rates. Commissioner Simmons stated we do not know what our tax picture is going to be like if this referendum passes in January. She stated the 65% property tax increase Mr. Brown mentioned is only for non-homesteaded properties. She stated for those that are homesteaded, the most taxes could increase each year was 3%. She agreed the Commission's decision is fiscally responsible and is looking at the long term of what the City wants for Atlantic Beach. Commissioner Fletcher stated he strongly concurs with his fellow Commissioners. Mayor Wolfson agreed that we do not know what is going to happen as a result of the referendum. He stated until the elected officials and staff know what the final vote is and can come up with a projected budget that can factor in the results of the referendum, the best strategy this commission can undertake is to allow the next commission and staff to calculate what our budget will be in the coming year. Votes: Aye: 5 - Borno, Fletcher, Simmons, Waters, Wolfson Nay: 0 MOTION CARRIED September 17, 2007 SPECIAL CALLED COMMISSION MEETING Page 3 Mayor Wolfson opened the public hearing for the second item to be considered, Ordinance 20- 07-87 establishing the Operating Budget for fiscal year 2007/2008. No one from the audience spoke so he closed the public hearing Motion: Adopt Ordinance No. 20-07-87 establishing the O erating Budget for Fiscal Year 2007/2008 Moved by Borno, Seconded by Fletcher Votes: Aye: 5 -Borno, Fletcher, Simmons, Waters, Wolfson Nay: 0 MOTION CARRIED 2. Ordinance No. 33-07-14, Public Hearing and Final Reading AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AMENDING ORDINANCES NOS. 33-07-12 AND 33-07-13 TO CHANGE BALLOT TITLE AND BALLOT SUMMARY LANGUAGE, AND PROVIDING AN EFFECTIVE DATE Mayor Wolfson read Ordinance No. 33-07-14 by title only Mayor Wolfson opened the floor to the public hearing. No one from the audience spoke so Mayor Wolfson closed the public hearing. Motion: Approve Ordinance No 33-07-14, as read Moved by Borno, Seconded by Fletcher Commissioner Borno explained this Ordinance is to change the summary language to meet the requirements of State law on how many words can be on the ballot summary. Votes: Aye: 5 -Borno, Fletcher, Simmons, Waters, Wolfson Nay: 0 MOTION CARRIED Adjournment Mayor Wolfson adjourned the Special Called meeting at 7:00 p.m. ATTEST: Donald M. Wolfson Mayor/Presiding Officer Donna L. Bussey City Clerk