COUNCIL ACTION - DISCUSSION - VOTE

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1 CITY OF OKEECHOBEE AUGUST 19, 2014, REGULAR CITY COUNCIL MEETING AND BUDGET WORKSHOP RD 55 SE 3 AVENUE COUNCIL CHAMBERS OKEECHOBEE, FL SUMMARY OF COUNCIL ACTION PAGE 1 OF 13 I. CALL TO ORDER - Mayor. August 19, 2014, City Council Regular Meeting; 5:00 p.m. II. OPENING CEREMONIES: Invocation given by Reverend Jim Benton, Faith Farm Ministries; Pledge of Allegiance led by Mayor. III. MAYOR, COUNCIL AND STAFF ATTENDANCE - City Clerk. Mayor James E. Kirk Council Member Mike O Connor Council Member Devin Maxwell Council Member Dowling R. Watford, Jr. Council Member Clayton Williams City Administrator Brian Whitehall City Attorney John R. Cook City Clerk Lane Gamiotea Deputy Clerk Melisa Jahner Police Chief Denny Davis Fire Chief Herb Smith Public Works Director David Allen IV. - Mayor. A. Requests for the addition, deferral or withdrawal of items on today s agenda. V. PROCLAMATIONS AND PRESENTATIONS - Mayor. A. Tammy Hartwell with a 5-Year Longevity Service Award. Mayor Kirk called the August 19, 2014, Regular City Council Meeting to order at 5:08 p.m., and requested a moment of silence, in honor of County Commissioner Ray Domer, who recently passed away. The invocation was offered by Reverend Jim Benton, of Faith Farm Ministries; the Pledge of Allegiance was led by Mayor Kirk. City Clerk Gamiotea called the roll: (entered Chambers at 5:13 p.m.) Absent (with consent) Absent (with consent) (entered Chambers at 5:25 p.m.) Mayor Kirk asked whether there were any requests for the addition, deferral or withdrawal of items on today s agenda. New Business Item C was added, to discuss the Aaron Hill Case. On behalf of the City, Mayor Kirk and Police Chief Denny Davis presented to Ms. Tammy Hartwell, a Longevity Service Award of an engraved cross pen, and a framed certificate which read, In Recognition for completing Five Years of Dedication and Service with the City of Okeechobee, Florida, as a Police and Fire Emergency Dispatcher, July 28, 2009 to July 28, 2014.

2 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 2 OF 13 VI. MINUTES - City Clerk. A. Motion to dispense with the reading and approve the Summary of Council Action for the July 15, 2014, City Council Regular Meeting. VII. WARRANT REGISTER - City Administrator. A. Motion to approve the July 2014 Warrant Register: General Fund...$345, Appropriations Grant Fund $124, Capital Improvement Projects Fund $ 18, Public Facilities Improvement Fund $ 17, FDOT - Grant Fund...$ 14, Law Enforcement Special Fund $ VIII. CENTENNIAL UPDATE. A. Receive the monthly update from the Centennial Celebration Ad Hoc Committee - JD Mixon, Chair. Council Member O Connor moved to dispense with the reading and approve the Summary of Council Action for the July 15, 2014, Regular Meeting; seconded by Council Member Watford. There was no discussion on this item. VOTE KIRK - YEA MAXWELL - YEA O CONNOR - YEA WATFORD - YEA WILLIAMS - ABSENT MOTION CARRIED. Council Member Watford moved to approve the July 2014 Warrant Register in the amounts: General Fund, three hundred forty-five thousand, nine hundred six dollars and thirty-four cents ($345,906.34); Appropriations Grant Fund, one hundred twenty-four thousand, eight hundred eighty-three dollars and forty-seven cents ($124,883.47); Capital Improvement Projects Fund, eighteen thousand, nine hundred two dollars and fifty-four cents ($18,902.54); Public Facilities Improvement Fund, seventeen thousand, two hundred eighteen dollars and two cents ($17,218.02); FDOT - Grant Fund, fourteen thousand, three hundred ninety-five dollars and fifty-one cents ($14,395.51); and Law Enforcement Special Fund, one hundred dollars ($100.00); seconded by Council Member O Connor. Finance Director Riedel responded to Council Member O Connor s inquiry, that the FDOT Grant Fund is the South Parrott Avenue median landscape project obtained by Okeechobee Main Street. VOTE KIRK - YEA MAXWELL - YEA O CONNOR - YEA WATFORD - YEA WILLIAMS - ABSENT MOTION CARRIED. CCAHC Chairperson, Mr. J.D. Mixon, gave the following update on the progress of the City s Centennial Celebration. A slogan was adopted, Our Pioneering Spirit Endures. A Call to Artists was advertised in an effort to obtain entries for a logo. They will be considered at the August 25 meeting. Potential Centennial sponsored events have been established: January, Kick-Off Dinner, with the unveiling of the logo and slogan; April, Mayors Gala, formal dinner th fundraiser, tentatively scheduled to be held at the ROC; June, 100 Birthday Party, incorporating traditional and family events, including a birthday cake contest; October, Founders Day; December, Frolic, (dinner/dance) as was called from the book A Land Remembered. A beautification project to renovate the walkway in front of City Hall with brick pavers is still being discussed as a fundraiser with the incorporation of burying a time capsule in the walkway. He encouraged the public to attend the meetings and get involved.

3 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 3 OF 13 VIII. CENTENNIAL UPDATE CONTINUED. A. Receive the monthly update from the Centennial Celebration Ad Hoc Committee continued. IX. RECESS REGULAR MEETING AND OPEN BUDGET WORKSHOP - Mayor. X. NEW BUSINESS. A. Motion to adopt proposed Resolution No , opposing and urging further amendments to the Biggert-Waters Flood Insurance Reform Act of City Administrator (Exhibit 1). Council Member O Connor questioned whether the amount of funding for these events has been established. Chairperson Mixon explained at their next meeting, members will have an opportunity to volunteer to be the coordinator of each event. One of their duties will be to set a budget based on the activities for the event. Council Member O Connor advised, the Tourist Development Council (TDC) may be a prospective financial resource for advertising. Both Council Members O Connor and Maxwell are the City representatives on this board, and explained the TDC has assisted with other community events. There is an application process, so time is of the essence. Again, the Council asked Mr. Mixon to extend their appreciation to the Committee for all their hard work and efforts. Mayor Kirk announced a change in the order of the agenda, with no objections noted, he moved on to New Business at this time. Council Member O Connor moved to adopt proposed Resolution No , opposing and urging further amendments to the Biggert-Waters Flood Insurance Reform Act of 2012; seconded by Council Member Watford. Council Member Watford read proposed Resolution No by title only as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA, OPPOSING AND URGING FURTHER AMENDMENT TO THE BIGGERT-WATERS FLOOD INSURANCE REFORM ACT OF 2012; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. Administrator Whitehall explained the City of Clewiston requested each city surrounding Lake Okeechobee adopt this resolution. Congress passed the Biggert-Waters Flood Insurance Reform Act 2012, as a subsidy effort to regulate the National Flood Insurance s solvency, and to be phased out over five years. In past years, when there has been a flood map change, properties identified in flood zone areas were grandfathered as part of the subsidy, and so they received no insurance fluctuation. Now they are phasing out those grandfathered properties, even those that have received elevation certificates, and any property identified in the new flood zone map is required to attain flood insurance. This has created a hardship, as flood insurance may not be obtainable for some properties, and it is a requisite for those entities with mortgages. Mayor Kirk asked whether this resolution will correct the situation. Administrator Whitehall replied, this resolution is an effort towards a more permanent fix. An ordinance is forthcoming by the middle of next year for the City to officially adopt the new flood zone map. Lobbying efforts will continue for the provision of the subsidies.

4 AUGUST 19, CITY COUNCIL - REGULAR MEETING & BUDGET WORKSHOP - PAGE 4 OF 13 X. NEW BUSINESS CONTINUED. A. Motion to adopt proposed Resolution No , opposing and urging further amendments to the Biggert-Waters Flood Insurance Reform Act of 2012 continued. Council Member Maxwell elaborated of an individual who is experiencing this detrimental recourse, in that they are now being required to purchase flood insurance, and have found it to be an impossible task, as either no insurance company will underwrite it, or it is an astronomical premium. VOTE KIRK - YEA MAXWELL - YEA O CONNOR - YEA WATFORD - YEA WILLIAMS - ABSENT MOTION CARRIED. B. Consider changes made to the Fall Schedule of City Council Meetings - City Clerk (Exhibit 2). Included in Exhibit 2 was a memorandum outlining the recommended meeting schedule for the next four months. Staff nd th th is recommending to cancel the September 2 meeting, and conduct regular meetings on September 16 and 30 to coordinate with the Budget Hearings. Due to the Election and the annual Christmas Tree Lighting Celebration, it is being recommended to conduct only the second meeting per month for October through December. Council Member Watford moved to cancel the September 2 meeting, conduct regular meetings on September 16 and 30, and conduct one meeting a month for the months of October through December, with the meeting dates being: October 21, November 18, and December 16; pending any urgent circumstances; seconded by Council Member O Connor. VOTE KIRK - YEA MAXWELL - YEA O CONNOR - YEA WATFORD - YEA WILLIAMS - ABSENT MOTION CARRIED. For clarification, the following meetings are cancelled: October 7, November 4, and December 2. There are pending applications for rezonings and land use changes that may require conducting additional Council meetings. Should this occur, the Mayor can issue a notice requiring a Special or Regular Meeting as necessary. C. ITEM ADDED TO THE : Police Report on the Aaron Hill Case - Police Chief Davis. The Mayor, Council, Police Department, as well as City Hall Staff, were recently inundated with the news media, phone calls, s, and protestors regarding a video that went viral after being posted on Facebook of a local autistic teenager being beat and bullied. The Police Department immediately took the necessary action learning of the incident, and the person who inflicted the beating was arrested, with arrests pending investigation of others involved, but this did not deter the public comments and opinion. Council Member Watford began the discussion by expressing how disturbing this case has become due to the dissemination of erroneous information through social media.

5 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 5 OF 13 X. NEW BUSINESS CONTINUED. C. ITEM ADDED TO THE : Police Report on the Aaron Hill Case continued. It is unfair how they have blasted the City Police, Mayor and Council, stating they are not doing enough. Police Chief Davis remarked throughout his police career he has not experienced anything as inundated as this case, they are still investigating the potential of more arrests along with the State s Attorney Office. Administrator Whitehall distributed a memorandum being used as City Hall s official response to s and calls by outraged citizens. Mayor Kirk read it for the records as follows: First, let me say that the video is as disturbing to me as it is to anyone, perhaps more so. I m saddened and upset that this type of behavior has taken place in our community but am not naive enough to believe it could happen. Secondly, I take any insinuation of impropriety within the City ranks as a serious accusation, worthy of investigation. In spite of allegations to the contrary, there is no evidence whatsoever to impugn the Okeechobee Police Department. The case was investigated properly. The party inflicting the beating on this young man was incarcerated immediately and charged with the appropriate felony. A warrant was immediately submitted through the State s Attorney s office for those others involved in the incident and there has been at least one additional arrest made to date. The City is hardly dismissing the case and I can assure you that those responsible will be prosecuted to the highest extent provided for by law. There is NO connection, by relation, employment or otherwise, between the perpetrator and members of our Police Department. The Council agreed this should continue to be the response given, and it will be forwarded via to the Mayor and Council to utilize as necessary. Council Member Maxwell suggested the public be educated on the extremity of the charges, as they might misunderstand due to the variations in laws from state to state. Mayor Kirk stated it is unfortunate in this day and age, with the access of social media, for our City and employees to endure this amount of uninformed backlash that has occurred. IX. RECESS REGULAR MEETING AND OPEN BUDGET WORKSHOP - Mayor. A. Discuss the proposed 2014/2015 Fiscal Year Budget - Finance Director. MAYOR KIRK RECESSED THE REGULAR MEETING AND OPENED THE BUDGET WORKSHOP AT 5:47 P.M. The purpose of the workshop is to discuss the proposed 2014/2015 Fiscal Year Budget. The floor was yielded to Finance Director, Mrs. India Riedel, who began with a power point presentation explaining the budget process in three parts. Part One: Revenues, this is the seventh consecutive year property values have declined. However, this years decline is less than a one percent change from the previous year. For the second consecutive year, there is a slight increase in Sales and Fuel Tax with the Sales Tax Revenues projected to continue to increase incrementally. The Local Option Sales Tax Receipts depicts the 1-cent tax line estimated to receve16 percent more than last year, and a 9.2 percent increase overall. The Communication Service Tax has decreased dramatically by 13 percent.

6 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 6 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. Other revenue sources that has or can be reviewed for possible increases or implementation are: the Natural Gas Franchise Fee, Building Permit Fees, and the Business Tax Receipt Fees. Part Two covered the Fund Balance Categories, they were reviewed to explain how the City must administer certain revenues and expenditures, and to be assured not to allocate a disproportionate percentage of funds from reserves or certain areas. By keeping the parameters, it stabilizes the City s fiscal soundness. The categories are Non- Spendable, Restricted, Committed, Assigned, and Unassigned. Part Three: Expenditures, Departments Heads have again been diligent in expending their operations and supplies budgets, which has narrowed the difference in budgeted versus actual expenses. The projected year end expenses are expected to be less than budgeted. The General Fund proposed expenditures are up 3.5 percent from previous year, which correlates with the State Per Capita Increase of 3.15 percent. The increases are mainly in the area of insurances; fuel cost; software maintenance; matching grant funds; the Centennial Celebration, crosswalks for the downtown intersections, stormwater/canal cleanup, and increased landscaping maintenance. Council was also reminded that the initial adopted budget versus the year-end actuals are becoming more in-line and it is estimated that only half the amount of budgeted reserve funds will actually be required for the current budget year, which increases the beginning balances for the various funds. The proposed General Fund Budget Summary offered the Council three options to balance the Budget. The consensus of the Council was to use Option Three, prior years millage rate of , listing the beginning Fund Balance as $3,744,185.00; Revenues of $4,618,798.00; Transfers-In Revenues of $5,820, (from Public Facilities Improvement Fund $398,000, Capital Improvement Projects Fund $803, and Capital Improvement Projects-Impact Fees Fund $100.00); Total Expenditures of $5,820,358.00; and leaving a Fund Balance of $3,744, Option One proposed to increase the millage by 0.25, for a rate of Option two used the roll-back millage of The difference between the roll-back millage rate and prior years rate is the roll-back number is based on what is needed to give the same revenues of ad valorem as the previous year. In order to receive $1,740, in ad valorem revenue last year, the millage was set at Due to the decrease in assessed values for this year, that same rate would only bring in $1,750, Using the roll-back rate of provides $1,763, in ad valorem revenue, which is a millage increase of The Council then discussed each department s proposed budget, changes and comparison to last Fiscal Year.

7 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 7 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. Proposed Budget for General Fund/ Total Personnel Cost: $ 73, Legislative/City Council Total Supplies and Other Services: $ 57, (511) FY 2014/15 Proposed Total: $130, FY 2013/14 Budgeted Total: $137, Difference: $ (6,737.00) Items to Note/Changes/Discussion (pages 7-9): Life and Health Insurance increased $860 based on rate hikes, as well as Workers Compensation by $19. Retirement increased only by $10. Other Contract Services (Dale Milita, Lobbyist Services Contract) increased $2,000. Property/Casualty Insurance increased $263 due to rates. Repair/Maintenance Equipment increased $600 for software. Shared Services Council requested contribution decreased by $10. Decreased the Local Community Request line item by $20,000, leaving $10,000 to address the request from the Chamber for Economic Development; and added a Tourism/Economic Development/Centennial line item of $10,000. There are no proposed salary changes. Proposed Budget for General Fund/ Total Personnel Cost: $165, Executive/Administration Total Supplies and Other Services: $ 19, (512) FY 2014/15 Proposed Total: $184, FY 2013/14 Budgeted Total: $179, Difference: $ 4, Items to Note/Changes/Discussion (pages 11-13): Executive and Regular Salaries and FICA increased $1,284, $436, and $421 respectively to include the salary step plan. Retirement increased $458 based on employer contribution rate increased by.03 points. Life and Health Insurance increased $1,477 due to rate hikes as well as Workers Compensation by $61. Property/Casualty Insurance increased $302 due to rates. Repair/Maintenance Equipment increased $253 for software; and Fuel/Oil increased $40. Proposed Budget for General Fund/ Total Personnel Cost: $155, Second Executive/City Clerks Office Total Supplies and Other Services: $ 55, (2512) FY 2014/15 Proposed Total: $210, FY 2013/14 Budgeted Total: $200, Difference: $ 10, Items to Note/Changes/Discussion (pages 14-16): Executive and Regular Salaries and FICA increased $846, $550, and $32 respectively include the salary step plan.

8 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 8 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. City Clerk continued: Other Salaries was increased $8,743 to add a temporary part-time office assistance for this Fiscal Year only in an effort to assist with the City s Centennial. Retirement increased $208 based on employer contribution rate increasing by.03 points. Life and Health Insurance increased $1,383 due to rate hikes as well as Workers Compensation by $72. Travel and Per Dem increased $500 based on trend. Property/Casualty Insurance increased $434 due to rates. Repair/Maintenance Equipment increased $680 for software. Other charges decreased $1,500 based on trend. Education decreased $400 based on trend. Office Supplies decreased by $500. Proposed Budget for General Fund/ FY 2014/15 Proposed Total: $85, Legal Services FY 2013/14 Budgeted Total: $72, (514/City Attorney) Difference: $13, Items to Note/Changes/Discussion (pages 17-19): Health Insurance increased by $566 due to rate hikes. Professional Services increased $6,000, for additional hours. Legal Cost increased $6,827 to cover continued litigation. Repair/Maintenance Equipment increased $120 for software. Proposed Budget for General Fund/ Total Personnel Cost: $170, Finance Department Total Supplies and Other Services: $ 89, (513) FY 2014/15 Proposed Total: $260, FY 2013/14 Budgeted Costs: $251, Difference: $ 9, Items to Note/Changes/Discussion (pages 20 to 22): Executive and Regular Salaries increased $801 and 996 respectively to include the salary step plan. Retirement increased $268 based on employer contribution rate increasing by.03 points. Life and Health Insurance increased $2,022 due to rate hikes, as well as Workers Compensation by $46. Accounting/Audit increased $5,300 to meet the single audit requirements. Other Contractual Services remained the same for web site design. Property/Casualty Insurance increased $430 due to rates. Repair/Maintenance Equipment increased $1,040 for software. Operating Supply decreased $1,200 by removing the 5 year requirement for CBIZ. Proposed Budget for General Fund/ Total Personnel Cost: $ 73, General Services Department Total Supplies and Other Services: $266, (519) FY 2014/15 Proposed Total: $340, FY 2013/14 Budgeted Total: $327, Difference: $ 13,095.00

9 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 9 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. Items to Note/Changes/Discussion (pages 23-25): Regular Salaries increased $288 to include the 1.5 percent salary step plan. Other Salaries decreased $13,155, and FICA by $951, based on removing the part-time custodian position, and includes the salary step plan. Retirement increased $96 based on employer contribution rate increasing by.03 points. Life and Health Insurance increased $635 due to rate hikes, as well as Workers Compensation by $25. Other Contractual Services increased by $23,422 to add cleaning service costs for all departments. Rentals/Leases decreased $54. Property/Casualty Insurance increased $1,164 due to rates. Repair/Maintenance Equipment increased $420 for software upgrades. Office Supplies increased $500 based on trend. Proposed Budget for General Fund/ Total Personnel Cost: $1,757, Police Department Total Supplies and Other Services: $ 310, (521) FY 2014/15 Proposed Total: $2,067, FY 2013/14 Budgeted Total: $2,007, Difference: $ 60, Items to Note/Changes/Discussion (pages 26-28): Executive and Regular Salaries increased $1,131 and $6,1181 respectively to include the salary step plan. Holiday Pay, Overtime, and FICA were increased based on trend estimates. Other Salaries increased by $5,000 to add working hours for the temporary part-time officers, and include the part-time salary step plan. Retirement increased by $979, due to employer contribution increasing by.50 points. Life and Health Insurance increased by $19,263 due to the rate hikes, as well as Workers Compensation at an increase of $2,733. Other Contractual Services increased by $9,423, to add Spillman/CAD maintenance costs; Property/Casualty Insurance increased by $3,081 based on rates. Repair/Maintenance Vehicles increased by $2,500 as additional maintenance is anticipating due the expiration of the warranty on the seven vehicles that are owned, not leased. Repair/Maintenance Equipment increased by $1,064 and Operating Supplies by $1,400 based on trend. Fuel/Oil decreased by $125. Uniforms/Patches increased by $2,300 for costs associated with uniforms and replacement of four body armor. Books/Publications increased $500 due to the substantial increase of law books. Proposed Budget for General Fund/ Total Personnel Cost: $1,211, Fire Department Total Supplies and Other Services: $ 191, (522) FY 2014/15 Proposed Total: $1,403, FY 2013/14 Budgeted Total: $1,370, Difference: $ 33, Items to Note/Changes/Discussion (pages 29-31): Executive Salaries increase $1,078 and Regular Salaries increased $9,031 to include the salary step plan.

10 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 10 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. Fire Department Continued: Holiday Pay, Other Salary, Overtime, and FICA were increased based on trend estimates. Retirement increased $1,261 based on employer contribution rate increasing by 2.05 points. Life and Health Insurance increased by $10,930 due to rate hikes, as well as Workers Compensation at an increase of $2,637. Dispatchers salary and Fire Volunteers pay are also included within this department budget. Other Contractual Services remained the same at $2,450 to cover the maintenance of the SLERS radios. Communication/Freight increased $600. Property/Casualty Insurance increased due to rates by $2,139; Repair/Maintenance Vehicles increased $2,000 due to the age of the fleet and increased maintenance. Fuel/Oil decreased by $968 based on trend and cost saving measures. Proposed Budget for General Fund/ Total Personnel Cost: $ 625, Public Works Department Total Supplies and Other Services: $ 509, (541) FY 2014/15 Proposed Total: $1,135, FY 2013/14 Budgeted Total: $1,075, Difference: $ 60, Items to Note/Changes/Discussion (pages 32-34): Regular Salaries increased $30,339 to include the salary step plan and mostly to cover the payout of C. Lamb s retirement. Other Salaries increased $11,000 to add three temporary part-time maintenance operators to work 24-hours per week from May 1 through September 30 (previously only two have been hired), and the part-time salary step plan. Life and Health Insurance increased by $6,203 due to the rate hike. Various personnel costs in salaries, FICA, retirement, overtime, and workers compensation increased by $6,284 due to adding the third temporary part-time employee, premiums, and including the 1.5 percent annual salary step. Garbage Collection of $369,262 was an increase by $5,815 to reflect the 1.16 percent rate increase. Operating Supply increased $2,500 for software purchases and maintenance costs. Fuel and Oil increased by $1,787. Operating Supplies (tires) decreased by $500. Proposed Budget for the Public Facility Improvement Fund: (301/Transportation) Total Beginning Fund Balance: $546, Total Revenues: $651, Total Expenditures: $709, Transfer-Out to General Fund: $398, Ending Fund Balance: $ 90,666.00

11 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 11 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. Cost changes and Proposed Projects: The expenditures include $15,000 for Professional Engineering Services ($13,000 increase from previous FY). $72,500 for Grounds/Landscape Maintenance ($15,000 increase from previous FY). $33,000 for Repair/Maintenance includes trash cans for parks, irrigation upgrade to butterfly garden, replace 10 trees in parks, and replacement of equipment ($16,500 increase from previous FY). $70,000 for Road and Materials (same as last FY). $385,000 for Improvements which covers the asphalt/roadway improvements program, sidewalks nd th installation/rehabilitation project, canal cleanup project (Southwest 2 Avenue and 8 Street), culvert replacement program and striping project ($35,000 increase from previous FY). $37,500 for Machinery and Equipment to replace a chipper, gas pump, and concrete chain saw (a $48,000 decrease from previous FY). Proposed Budget for the Appropriations Grant Fund: (307) Total Beginning Fund Balance: $0.00 Grant Revenue: $100, Transfer-In from CIP (304/Reserves) Fund: $ 5, Total Expenditures: $105, Ending Fund Balance: $ 0.00 Proposed Project: This budget will address the stormwater/canal clean-up projects, should it be awarded. Proposed Budget for the FDOT Grant Fund: (308) Total Beginning Fund Balance: $ 7, Grant Revenue: $13, Transfer-In from CIP (304-Reserves) Fund: $ 3, Total Expenditures: $23, Ending Fund Balance: $ 0.00 Project expenditures: The final pay-outs to close the Highway Landscape Grant with FDOT and Okeechobee Main Street. The City is now assuming the maintenance of the landscaping, identified in Public Facility Improvement Fund, projected at $21,000.

12 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 12 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. Proposed Budget for the Other Grants Fund: (302) Total Beginning Fund Balance: $ 0.00 Total Grant Awards: $340, Transfer-In from CIP (304) Fund: $300, Transfer-In from CIP (304/Reserves): $129, Total Expenditures: $769, Ending Fund Balance: $ 0.00 Proposed Projects: It is anticipated the City will be awarded at least two grants toward the development of the Taylor Creek Park. The Florida Department of Environmental Protection (DEP) Total Maximum Daily Load Grant for $183,730, plus matching City funds of $183,630. The DEP Section 319 Grant for $250,208, plus matching City funds of $147,052. Proposed Budget for the Capital Improvements Projects Fund: (304) Total Beginning Fund Balance: $4,903, Total Revenues: $ 242, Total Expenditures (Assigned): $ 484, Transfer-Out to Other Funds: $ 437, Transfer-Out to General Fund: $ 790, Ending Fund Balance: $3,434, Proposed Projects: Professional Services to Administration $15,000. Repair and Maintenance for demolition to buildings $25,000. Laser/Scanner/Printers for Administration and Finance Departments $2,250. Remodeling of the General Services and City Clerks Offices, carpet and blind replacement, furniture and floor plan reconfiguration, and finalize City Hall kitchen remodel $47,200. Equipment and vehicles for the Police Department $340,500. Fire Prevention, Safety and Office Equipment for Fire Department $14,800. Crosswalks/Streetscape Improvements in coordination with the State Road 70/US Highway 441 Improvements $40,000. Proposed Budget for the Capital Improvements Projects-Impact Fees Fund: (303) Total Beginning Fund Balance: $46, Total Revenues: $ Total Expenditures: $36, Transfer-Out to General Fund: $ Ending Fund Balance: $10,064.00

13 AUGUST 19, CITY COUNCIL REGULAR MEETING & BUDGET WORKSHOP - PAGE 13 OF 13 A. Discuss the proposed 2014/2015 Fiscal Year Budget continued. Proposed Budget for the Law Enforcement Special Fund: (601) Total Beginning Fund Balance: $6, Total Revenues: $ Total Expenditures: $3, Ending Fund Balance: $2, The Salary Options were then distributed for review along with the proposed Step Plan for both full-time and part-time positions. Option One, is for a 1.6 percent across the board increase. Total cost for full-time employees is $47,286.83, and for part-time employees is $4, Option Two is for a 3.15 percent across the board increase. Total cost for full-time employees is $94,026.90, and for part-time employees is $5, Option Three was for a flat $ increase on the base salary. Total cost for full-time employees is $39, and for part-time employees is $4, After careful consideration, the consensus was to present the budget at the first hearing with Option One. XI. ADJOURN WORKSHOP AND RECONVENE IN REGULAR SESSION - Mayor. ADJOURN MEETING - Mayor. MAYOR KIRK ADJOURNED THE BUDGET WORKSHOP AND RECONVENED IN REGULAR SESSION AT 7:21 P.M. There being no further discussion nor items on the agenda, Mayor Kirk adjourned the meeting at 7:21 p.m. The next regular scheduled meeting is September 16, Please take notice and be advised that when a person decides to appeal any decision made by the City Council with respect to any matter considered at this meeting, he/she may need to insure that a verbatim record of the proceeding is made, which record includes the testimony and evidence upon which the appeal is to be based. City Clerk media are for the sole purpose of backup for official records of the Clerk. ATTEST: James E. Kirk, Mayor Lane Gamiotea, CMC, City Clerk