The Lake County Board of County Commissioners met in special session on Thursday, January 23, 1997, at 9:00 a.m., in the Community Room of the Bland Public Library, Mount Dora, Florida. Commissioners present at the meeting were: William "Bill" H. Good, Chairman; G. Richard Swartz, Vice Chairman; Catherine C. Hanson; Welton G. Cadwell; and Rhonda H. Gerber. Others present were: Sandy A. Minkoff, County Attorney; Sue B. Whittle, County Manager; Alvin Jackson, Assistant County Manager; Ava Kronz, Director of Continuous Quality Improvement; Fletcher Smith, Senior Director, Community Services; Mike Anderson, Senior Director, Facilities & Capital Improvements; Craig Haun, Senior Director, Fire & Emergency Services; Leslie Little, Economic Development Director; Sharon Farrell, Senior Director, Division of Growth Management; Jim Stivender, Jr., Senior Director, Public Works; Don Post, Senior Director, Solid Waste Management Services; Sarah LaMarche, Director of Budget; Barbara Lehman, Chief Deputy Clerk; John White, Vice President, William R. Hough & Company; Stefan Haberer, Assistant Vice President, William R. Hough & Company; Mike Kelley, Assistant Vice President, William R. Hough & Company; and Marlene S. Foran, Deputy Clerk.
It was noted that a notebook, consisting of an agenda and backup material, and the Monthly Financial Report, dated September 1996, had been distributed prior to the start of the meeting.
Commr. Good introduced John White, Vice President, William R. Hough & Company; Stefan Haberer, Assistant Vice President, William R. Hough & Company; and Mike Kelley, Assistant Vice President, William R. Hough & Company.
Ms. Sue Whittle, County Manager, stated that, on January 21, 1997, the Board approved entering into a contract with Hough & Company as the County's financial advisors and Mr. White, Mr. Haberer and Mr. Kelly were present today to learn about the fiscal issues in Lake County.
Mr. John White, Vice President, William R. Hough & Company, stated that Mr. Haberer specializes in utilities and solid waste issues, and Mr. Kelly was an analyst and would be the support banker for Lake County. He stated that Hough & Company's philosophy was to protect the client's financial interest whether it was treasury management or helping to establish financial goals and objectives; to maximize their flexibility to manage debt; and to present ideas that are both reasonable and appropriate to their clients. He stated that they look forward to a good relationship with Lake County.
GENERAL FUND OVERVIEW AND PROJECTIONS
Ms. Whittle directed attention to the Lake County Budget Tenets for Fiscal Year 1997/98 and briefly discussed the following tenets:
1. Current Revenues are sufficient to support current expenditures.
2. The County will maintain a strong General Fund reserve, similar to the prior year's reserve.
3. Contingency reserves will be adequate in all funds.
4. Sufficient maintenance and replacement dollars will be provided, to ensure capital facilities and equipment are property maintained.
5. Assure the existing service level in a growing County.
6. Maintain a competitive compensation and benefit package for our workforce.
7. Enhancement programs will be reviewed by the County Manager and brought to the Commissioners during the July workshop.
Ms. Sarah LaMarche, Director of Budget, presented an overview of the General Fund Summary for Fiscal Years 1995/96 - 1998/99 and explained that this was the first year that the department directors have provided the Budget Office their estimates of projected revenues and projected expenditures on a three (3) year basis. She stated that the General Fund Summary was based on the following assumptions: 1) 3.5% growth rate in ad valorem tax base; rate stays at 4.909 mills; 2) 5% growth from state 1/2 cent and state revenue sharing; 3) 5% increase in Budget Department estimate for Constitutional Officers' transfer; 4) County Department/Office directors submitted their own budgets; and 5) Beginning Fund Balance is based on 100% of revenue projections of departments, and 95% of Ad Valorem; and actual expenditures projected at 95% of budget, based on historical average. She stated that the County was looking at an estimated shortfall of $231,154 for Fiscal Year 1997/98, and a shortfall of $2,151,831 for Fiscal Year 1998/99 based on the above noted assumptions. At this time, she reviewed the projected transfers in excess fees for the Constitutional Officers. She discussed the Expenditures by Department and noted that the Board of County Commissioners Department/Office estimates from the departments were very conservative. She explained that the only changes in Reserves and Contingencies was a decrease of approximately $200,000 in Special Reserves for Fiscal Year 1997/98 and Fiscal Year 1998/99, factoring said amount into the Economic Development Commission.
Ms. LaMarche directed the Board's attention to the Monthly Financial Report, dated September 30, 1996, and noted that these were not final audited numbers. At this time, Ms. LaMarche provided an overview of the Summary which presents summarized comparisons of year-to-date balances of the current fiscal year budget, and the actual results from the prior year. She explained that the Governmental Funds include General Fund, Special Revenue, Debt Service, Capital Projects, and Expendable Trust Funds.
Mr. Don Post, Senior Director, Department of Solid Waste Services, presented a review of the Year-To-Date Tipping Fees Graph and explained that there was an increase in assessments and a decrease in tipping fees. He explained that the overall fee decrease in the tipping fees was the result of the withholding by the City of Leesburg pending the review of tipping charges per ton, a rebate to the haulers in 1995/96, and a lower amount being charged on the tipping fees due to an inaccurate average mountain generation rate in 1994. He stated that commercial recycling has been dramatically increasing in Lake County, and the materials are departing Lake County to Orlando or Marion County, which results in the County losing approximately $79,000 per month from commercial recycling.
Ms. LaMarche continued with the overview of the Summary; at which time Commr. Swartz requested that a note be added to the Year-To-Date General Government graph that would denote items that are included in the graph. Ms. LaMarche noted that the Year-To-Date Public Safety graph did not include the Sheriff's Department. At this time, Ms. LaMarche provided an overview of the Detail which presents the results of the County's operations for the month of September and for the fiscal year-to-date, which also includes General Fund revenues and expenditures by Department, Division, and Cost Center, information from other selected funds, and a report which shows the General Fund reserves and contingencies with detailed transfers out and remaining balances. Ms. LaMarche stated that the County Transportation Trust, under Expenditures, shows comparison of Year-To-Date for each department, and comparison of Year-To-Date for roads alone compared with all other expenses.
At this time, Ms. LaMarche provided a brief overview of Investments which presents the types of investments held by the County, maturities as appropriate, yields, and balances.
RECESS & REASSEMBLY
At 10:30 a.m., the Chairman announced that the Board would recess for five minutes and reconvene at 10:35 a.m.
SOLID WASTE ISSUES
Mr. Don Post, Senior Director, Department of Solid Waste Services, presented the Department of Solid Waste Services Ten-Year Fiscal Overview and directed the Board's attention to the chart illustrating the additional costs over the base year using 1996/97 as the base year. He explained that the chart list three scenarios illustrating the Line of Credit and the payoff with the infrastructure sales tax over five years, ten years and twenty years. Ms. LaMarche interjected that the chart illustrates the major needs of Solid Waste over the next ten years, over and above the current budget, and noted that in 1999 a Waste To Energy Improvement, in the amount of $1,500,000, needs to be factored in. Mr. Post explained that the Waste To Energy Improvement was for a nitrogen injection system to remove trace elements of dioxin that has been required by the Environmental Protection Agency. Extensive discussion occurred in regard to Resource Recovery Current Debt, Major Capital, Fund 422, and Fund 423.
Mr. Post explained that the issues that would skew the projections would be a change in interest rates, both revenues and projected refinancing assumptions; reduction in the tons of garbage being landfilled/sent to Waste To Energy; and lack of budgetary dollars to continue funding $1,800,00 toward the Line of Credit. At this time, Mr. Post discussed the following options: 1) Keeping the tipping fees and assessment fees at the same level; 2) Pledge some/all of the existing available Infrastructure Sales Tax; 3) Refinance the Ogden WTE Series 1993A debt; 4) Create a countywide commercial MSTU for garbage, 5) Increase tipping fees; and 6) Keep the Infrastructure Sales Tax in place after the December 31, 2001 expiration date.
Commr. Swartz requested that staff research the contract with Ogden Martin to determine if County approval was required for Ogden Martin to put in a third boiler and, if the contract does not provide any relief, are there other methods of providing relief to the County. He noted that the County would be obligated to landfill the ash from the additional boiler.
Mr. Stefan Haberer, Assistant Vice President, Hough & Company, distributed a packet of information illustrating assumptions for refinancing the Ogden WTE Series 1993A debt, the general market, Municipal Market Data, and Solid Waste Price Index, and stated that Hough & Company has the knowledge of the bonds that are available on the market. Discussion occurred in regard to the WTE Series 1993A debt refinancing and payoff.
Commr. Swartz requested that an analysis be prepared illustrating the tipping fees necessary to meet the accelerated payments for a payoff of the Resource Recovery Bonds.
Capital Improvement Line of Credit Extension
Ms. Barbara Lehman, Chief Deputy, County Finance, presented an overview of the Capital Improvements Line of Credit and distributed a copy of the Lake County Capital Improvements Line of Credit highlights for review. She explained that the maturity date for the Capital Improvement Line of Credit was August 31, 1997, and that money has been set aside in the fund for paying off the outstanding Line of Credit in the amount of $8,000,000. She stated that the five pledged revenues for the note were land sales at the Industrial Park, borrowing proceeds, proceeds of Second Guaranteed Entitlement Bonds, Covenant to budget and appropriate, and Second Guaranteed Entitlement Revenues. She further stated that the Bonds were used to provide financing for Waste and Wastewater Improvements at the Industrial Park; road projects; infrastructure sales tax projects including the renovation of the old jail, historical courthouse, and the round courthouse; and the construction of a records storage facility. At this time, discussion occurred in regard to the $8,000,000 Line of Credit.
Commr. Hanson stated that one variable that has not been discussed was what should the County's increase be in ad valorem each year. She explained that we know what it was historically, and what we are trying to accomplish through the increase in industrial development; however, another factor to consider was what could be done to increase the revenues from the ad valorem, what percentage should it be, and the increase in services that go with it concurrent if it is residential growth.
Ms. LaMarche briefly discussed the Proposed Capital Improvement Program List of Proposed Capital Outlay where funding was available for Fiscal Years 1996/97 through 2000/2001.
Ms. Whittle directed the Board's attention to the Proposed Capital Improvement Program List of Proposed Capital Outlay where funding was to be determined for Fiscal Years 1997/1998 through 2000/2001. She noted that there were additional projects that would be brought forward at a later date. She stated that the Judges have indicated a need for an additional three (3) courtrooms and Judges' suites.
Mr. Minkoff clarified that three additional Judges have been requested for Lake County; however, it was unlikely that the Legislature would approve the request, and very likely that one-half Judge would be approved.
Commr. Cadwell questioned why the Juvenile Detention Center had remained on the list, if the Board had decided that the Juvenile Detention Center was the responsibility of the state and not the County. Ms. Whittle responded that it was left on the list at the request of the Sheriff. Commr. Cadwell requested that the Juvenile Detention Center, in the amount of $1,500,000, be moved from Facilities and Capital Improvements to Sheriff.
Discussion occurred in regard to the request for POD E, an additional 256 beds; at which time Mr. Anderson stated that the Sheriff has indicated that there was a need for an additional Pod. He stated that there were approximately 600 inmates and every Pod was being occupied. Discussion occurred in regard to opening the Prelude; at which time Mr. Anderson stated that opening up the Prelude would require some renovation.
RECESS & REASSEMBLY
At 11:50 a.m., the Chairman announced that the Board would recess for lunch, and reconvene at 12:40 p.m.
Infrastructure Sales Tax
Ms. Whittle reviewed the Estimated Unfunded Capital Needs for Fiscal Year 1997/98 - 2001/2002 and noted that the estimated excess revenues from infrastructure sales tax through December 31, 2001 were in the amount of approximately $16,222,965, and the Major Capital Needs for the next five years were in the amount of $79,196,209. She stated that the net difference in capital funding was approximately $62,973,244.
Ms. Whittle directed the Board's attention to the Proposed Capital Improvement Program List of Proposed Capital Outlay with funding to be determined for Fiscal Years 1997/98 through 2000/2001. It was determined that the list would be rated "A" through "C" with "A" being the top priority.
Mr. Fletcher Smith, Senior Director, Community Services, presented the Community Services projects to be funded; at which time the Board discussed each project. Mr. Smith provided an update on the costs associated with the Morgue and explained that the medical examiner charges morgue maintenance fees to four (4) surrounding counties which results in excess revenue of approximately $40,000 per year that could be used to offset or pay off a note for renovation.
Commr. Swartz suggested that, in lieu of requesting higher morgue fees, the counties using the morgue provide a portion of the funding for the renovation of the morgue to avoid having to borrow money.
Discussion occurred in regard to the Public Health Clinic, at which time, Mr. Smith informed the Board that discussions have occurred in regard to moving the Public Health Clinic to Groveland. It was noted that Commr. Good, Commr. Cadwell, and Mr. Smith would meet with Dr. John Pelosie, Director of County Health Department, to discuss the Public Health Clinic and the Groveland/Mascotte alternative.
Mr. Mike Anderson, Senior Director, Facilities and Capital Improvements, presented the Facilities and Capital Improvements projects to be funded, at which time the Board discussed each project. It was the decision of the Board to remove "Recreation Development to Cities" from the list of projects and add Recreational as a "B" priority.
Commr. Swartz stated that the Parking Committee has approved an agreement for consideration which deals with the possible deficit of parking. He stated that one of the remedies would be to use the grassy knoll north of Main Street for sixteen to eighteen (16-18) parking spots. He suggested that the Board provide Mr. Anderson authorization to consider purchasing parcels, on the market at this time in the proximity of the courthouse, that would provide parking and prevent the use of the grassy knoll.
Mr. Minkoff stated that the City of Tavares agrees that the County does not have a parking problem at this time, but that the County was 400 spaces short, and the City has the ability in the year 2000 to demand that the County build those 400 spaces if our parking management has not worked.
Discussion occurred in regard to the Juvenile Detention Center, and it was noted that this project had been moved under the Sheriff. Commr. Cadwell stated that the Sheriff brought forward the Juvenile Detention Center, and he would support leaving it under the Sheriff.
Mr. Anderson presented the Ag Center project to be funded; at which time the Board discussed the renovation of the Ag Center. It was the decision of the Board to provide $200,000 in Fiscal Year 1997/98 and $475,000 in the 5th year.
Chief Craig Haun, Senior Director, Fire and Emergency Services, presented the projects for Fire and Emergency Services to be funded; at which time the Board discussed each project. It was the decision of the Board to address Stations, Pumpers and Tankers, Staff Vehicles, Equipment Response Vehicle, and Other (Signals, Generators, Dog Runs) at a later date.
Mr. Jim Stivender, Jr., Senior Director, Public Works, presented the project for Mosquito Control to be funded, and explained that a new office building has been added to the list to allow for the current facility to be used for records storage. He noted that Mosquito Control would be relocated at the Astatula Landfill.
Ms. Whittle presented the projects for the Clerk of Courts to be funded; at which time the Board discussed each project. Ms. Whittle explained that the projects were computer related projects that are needed to be completed by the year 2000.
Ms. Whittle presented the projects for the Sheriff to be funded, and it was noted that Pod E had previously been discussed, and it was the decision of the Board to allow for the renovation of the Prelude in the amount of $200,000.
Mr. Anderson discussed the necessary enhancements to the current fairgrounds, and it was the decision of the Board to include, under Facilities and Capital Improvements, Fairgrounds Enhancement in the amount of $500,000.
Discussion occurred in regard to the Juvenile Detention Center; at which time, Commr. Cadwell stated that projects that are brought forward by the Constitutional Officers should remain on the list. It was the decision of the Board to remove the Juvenile Detention Center from the list due to the fact that the County does not have the funds to pay for the facility nor is it the County's responsibility to provide the facility.
Discussion occurred in regard to the list of projects for Community Services, Facilities and Capital Improvements, Ag Center, Fire and Emergency Services, Mosquito Control, Clerk of Courts, and Sheriff and each project was rated "A" (top priority) to "C" (lowest priority), as follows:
Library Services/Records Center A
Library - South Lake For Future Consideration
Library - South Leesburg For Future Consideration
Public Health Clinic To be Removed
Facilities & Capital Improvements
Renovation - sitework A
Parking Garage A-5 (5th year)
Industrial Park, Phase II A-3 (3rd year)
South Lake Annex - multi use A-2 (2nd year;compare cost to lease space)
GIS Development Program A
ADA Compliance renovations A
Fairgrounds Enhancement A
Jail-relative humidity control To Be Removed
Expo Center/Fairgrounds To Be Removed
Land/Facilities purchases To Be Removed
General Buildings renovations To Be Removed
Renovation, expansion $200,000 A-1 (1st year)
$475,000 A-5 (5th year)
Fire & Emergency Service
County Radio System A
Stations: New, Additions, Land To Be Determined
Pumpers and Tankers To Be Determined
Staff Vehicles To Be Determined
Equipment Response Vehicle To Be Determined
Other (Signals, Generators, Dog Runs)To Be Determined
New Office B-5 (5th year)
Clerk of Courts
Computers Not Rated
VAX upgrade Not Rated
Records Center upgrade Not Rated
Family law/Jury Management Not Rated
BCC Finance Software Not Rated
Vehicle Maintenance Shop A
Prelude Renovation A
Pod E - 256 beds To Be Removed
Juvenile Detention Center To Be Removed
RECESS & ASSEMBLY
At 2:00 p.m., the Chairman announced that the Board would recess and reassemble at 2:20 p.m.
Judicial and Court Support Issues
Discussion occurred in regard to three additional courtrooms, at which time, Mr. Anderson discussed possible options available. He stated that a major design change to the building would be required if a Courtroom 9 and 10 were added and that Courtroom 8 was too small for a courtroom. Mr. Minkoff interjected that Courtroom 8 could be used as a Judges' suite.
Commr. Hanson stated that we should be utilizing all of the courtrooms all of the time before the Board considers adding additional courtrooms. It was the decision of the Board to authorize the Chairman and staff to meet with Judge Briggs to discuss the closer scheduling of courtrooms, using Courtroom 8 as a suite, and to consider night court.
Mr. Minkoff was directed to determine if the County had an obligation to provide space to the State Attorney and the Public Defender.
COMMUNITY SERVICES ISSUES
Mr. Fletcher Smith, Senior Director, Community Services, stated that the Community Development Block Grants were up for renewal this year and that Fruitland Park may be entering into the Library system this year. He stated that the cost of the initial equipment for Fruitland Park to enter into the system would cost approximately $65,000 to $80,000.
Commr. Swartz expressed concern that there was not enough money to continue to provide library services at the present level. He suggested that the County could provide library services to the south end of Lake County and through the bulk of the central and northern portion of the County through a cooperative arrangement with the Community College.
Mr. Smith discussed the AmeriCorp Grant and stated that the fourth year match requirements for the grant would be a 60/40 split. He suggested that, since this was a school based program, perhaps the School Board would be the appropriate agency to apply for this grant. He stated that the Eustis Elementary Principal was interested in applying for the grant, the County could assist him in writing the grant, and the Board may want to consider providing support. He noted that the cash match for this year was approximately $55,000, and the cash match next year would be $75,000 cash. He requested direction from the Board to urge the schools to take over as the sponsoring agency with some level of assistance from the County. At this time, the Board directed staff to take this issue to the School Board and report back to the Board with their findings.
Mr. Jim Stivender, Jr., Senior Director, Public Works, stated that the County has increased the production on impact fee projects by twenty (20%) percent over last year; however, the capital cost on gas tax has declined. He stated that the overall budget was an 8.3% increase in expenditures. He stated that a Transportation Workshop has been scheduled on March 4, 1997 and briefly discussed a draft outline of the issues to be discussed at the workshop.
Ms. Whittle informed the Board that staff would be coming forth with projections and options on additional revenue sources for transportation which would include an increase in gas taxes, and possibly an analysis based upon extension of the infrastructure sales tax.
DISCUSSION ON FUTURE FIRE FUNDING
Chief Craig Haun, Senior Director, Fire and Emergency Services, stated that Revenue from Fire Special Assessment was approximately $3,128,882. He reviewed the Total Taxable Value of Lake County, Less Taxable Value of Incorporated Areas, and Total Taxable Value of Unincorporated Area, and explained that the Total Taxable Value includes the Cities of Lady Lake, Howey-in-the-Hills, Astatula and Minneola.
Commr. Swartz informed the Board that the Fire and Emergency Services Advisory Board was very forward looking in terms of the needs of fire protection and fire capabilities in Lake County. He stated that it was important that the Board be aware of the discussions that are occurring at that committee level. He stated that the Advisory Board believes that the County needs a significant higher level of service than we currently have. He questioned if the direction of the Board was to allow the Fire and Emergency Services Advisory Board to proceed to put together alternatives, to education the community, and to receive input from the community.
Ms. Ava Kronz, Director of Continuous Quality Improvement, presented the list of Board of County Commissioners' Goals for Fiscal Year 1996/97, and noted that the focus areas were, as follows:
To Build a Sustainable Environment for Current and Future Generations in Lake County.
To Develop an Economic Base which will allow our citizens to enjoy optimum employment, varied cultural opportunities and a quality standard of living.
To nourish our communities enabling all residents the enjoyment of an aesthetically pleasing, safe, abundant, and healthy lifestyle.
To increase citizen confidence in Lake County Government.
Commr. Good requested that recognition and participation in Teen Celebration, and the Youth Recognition Program be added under Support programs.
Commr. Hanson suggested that the County look at increased locations on the Land Use Map for industrial development in Lake County.
Mr. Alvin Jackson, Assistant County Manager, presented a Visioning Action Agenda and briefly discussed same. He stated that the County Manager and himself have been meeting with individuals for the purpose of identifying those who would support the Visioning Program, and they are ready to move forward. He stated that the Vision Coordinating Team has been established and that possibly the County could contract with the University of Central Florida on certain portions of the process, mainly, the process model and the first two months of the initial process.
Commr. Hanson brought up for discussion the Economic Summit to be held this spring and encouraged the Board to support the Summit. She stated that the Economic Summit needs to be the driving force behind the Visioning Process.
Commr. Cadwell stated that he would ask for an update on the Economic Summit at the next Industrial Development Authority meeting.
NEW PROGRAMS FOR FISCAL YEAR 1998
It was noted that there were no new programs to be presented at this time.
Commr. Good brought up for discussion the Citizen and Question Period on the Board agendas and stated that the public should be encouraged to obtain information from staff before coming before the Board under Citizen and Question Period.
There being no further business to be brought to the attention of the Board, the meeting adjourned at 3:50 a.m.
WILLIAM "BILL" H. GOOD, CHAIRMAN
JAMES C. WATKINS, CLERK