Commissioner Tony Ortiz and Commissioner Patty Sheehan arrived at the meeting.

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1 Page 1 of 5 In attendance: Mayor Buddy Dyer Commissioner Jim Gray, District 1 Commissioner Tony Ortiz, District 2 (arrived at 10:07 a.m.) Commissioner Robert F. Stuart, District 3 Commissioner Patty Sheehan, District 4 (arrived at 10:07 a.m.) Commissioner Regina I. Hill, District 5 Commissioner Samuel B. Ings, District 6 Chief Assistant City Attorney Kyle Shephard City Clerk Denise Aldridge City Clerk Aide Elizabeth Davidson Police Officers Kevlon Kirkpatrick and Eddie Rosado, Sergeants-at-Arms Mayor Buddy Dyer called the meeting to order at 10:04 a.m. and introduced the topic as the 2018/2019 Fiscal Year Budget. Mayor Dyer stated that even though the economy has been good and property values are up, some revenue decreasers on the ballot in the area of tax reform and unfunded mandates, specifically in the area of School Resource Officers, will impact this and future budgets. Mayor Dyer called on Deputy Chief Financial Officer Brian Battles to present a working draft of the FY2019 budget in progress. Mr. Battles stated that the current budget reflects increased property tax revenues from the recession, the increased maintenance of infrastructure and facility maintenance funding, an increase in staffing related to economic conditions, the hiring of 15 police officers and 12 firefighters, and a $3 million dollar contingency at the start of the year, reflecting General Fund Revenue and Expenses of $446,401,952 and Other Funds Revenue and Expenses of $767,663,198 for a total FY2018 Budget of $1.2 billion dollars. Commissioner Tony Ortiz and Commissioner Patty Sheehan arrived at the meeting. Mr. Battles noted that FY2017 General Purpose City Reserves were above 25% (reflected as 26.6%) or approximately $120 million dollars. Mr. Battles spoke about Budget Review Committee Adjustments. Funding was added for a new Children Affairs Division, maintenance and improvement to Park of the Americas, Transportation Department multi-use trail projects, Water Reclamation projects, Stormwater projects, a Parking Repair and Replacement Capital Fund and a Real Estate Acquisition Fund. Staffing included the addition of 15 COPS-funded police officers, Children s Affairs Division and Grants Coordinator positions in the Families, Parks and Recreation Department, the addition

2 Page 2 of 5 of a Chief Planner position in the Housing Department, the addition of five plans-review positions in the Permitting Division and the addition of 35 positions for EMS Civilian Transport. Mr. Battles touched on the City Council approval of up to $80 million dollars for a future bond issuance and cost reimbursement allowance for the Orlando Bicycle Beltway, the building of new fire stations, improvements at Lake Lorna Doone Park and cleanup at Lake Notasulga, enhancements at the Rosemont and Dover Shores neighborhood centers, the repurposing of Grand Avenue Elementary School and the new Orlando Tennis Centre. A working draft of the FY2018/2019 Budget includes City estimates of State Revenue, Cost Allocation Plan values, Water Reclamation and Solid Waste Rate Reviews and additional programming and staffing changes. Preliminary numbers show a projected 9.35% increase in General Fund Revenues, largely attributed to estimated property tax revenues. Property taxes are determined by the taxable value of the property (determined by the Orange County Property Appraiser) and the City s millage rate (determined by City Council). The City s current millage rate is 6.65%, or $6.65 per $1000 of taxable value. The City s millage rate was raised in 2015 from 5.65 to The City has maintained the 6.65 millage rate every year since and anticipates maintaining the 6.65 millage rate in the upcoming budget as well. A Peer City review of millage rates shows Orlando in line with Tampa, St. Petersburg and Daytona Beach, in a millage rate review ranging from 3.0 to 9.0. Mr. Battles presented an example of a property tax bill for a home valued at $238,000 which shows that the City only utilizes 33% of each resident s tax bill to successfully fund all City services, which translates to roughly $3.43 per day. The City Total Assessed Value is $31 billion dollars, an increase of $3.1 billion dollars from New Construction is almost $900 million dollars of the increase and generated $6 million dollars in revenues. The 2018 Initial Save Our Homes Exemption is $2.3 billion dollars in value, resulting in a loss of $15.3 million dollars in revenue. The 2018 First $25,000 is $906 million dollars in value, resulting in a loss of $6 million dollars in revenues. The 2018 Commercial and Non-Homestead Cap is $3.5 billion dollars in value, resulting in a loss of $23.3 million dollars. The 2018 Additional $25,000 is $733 million dollars in value, resulting in a loss of $4.9 million in revenues. Two-thirds of the City s parcels are at capped value. Other revenue sources are Charges for Services, which shows an increase of approximately $5 million dollars largely due to the addition of EMS Transport Fees being consolidated into the General Fund. Intergovernmental and Sales and Tax Use charges show an approximate $2 million dollar increase from both Orlando Utilities Commission Dividend and State Sales Tax revenue and account for an almost $5 million dollar increase in the General Fund Revenue; and Other Revenue increase being driven primarily by Orlando Police Department Off-Duty reimbursement.

3 Page 3 of 5 Mr. Battles presented information on General Fund Expenditures by Departments, stating that the increase in the Non-Departmental category relates to investments in one-time capital improvements projects. Mr. Battles also presented information on General Fund Expenditures by Use, stating that the Transfers Out category includes capital and operational support, tax increment payments to the Community Redevelopment Agency (CRA) and a debt service component. Mr. Battles discussed Benefits Detail, noting that while health insurance is the single largest benefit item, the City s decision a few years ago to become self-insured in health insurance has contributed to maintaining stable health care costs, as well as the work done by the Wellness Team and health care advocates to keep rates low. This budget does include a premium increase of 5% due mainly to prescription costs increases. Mr. Battles discussed the Other Funds Budget Summary by noting that the Water Reclamation Fund supports a $28.1 million dollar capital program. With no fee increase in the Stormwater Fund, this budget supports a $2.5 million dollar capital program and anticipated debt service of $1.1 million dollars. Mr. Battles stated that the Community Redevelopment Agency (CRA) Operating Fund reflects a 10% increase to support Parramore housing initiatives, Project DTO, affordable housing and the new Downtown Ambassador Program. He concluded by noting that the Capital Improvement Fund has almost doubled due to investments in one-time capital improvements throughout the City. Mr. Battles continued to summarize Other Funds Budgets beginning with the Parking Fund, which includes a capital maintenance budget of $830,000, and noted that the GEICO parking garage fund, which had been housed in the Orlando Venues budget, is now included in the Parking Fund budget. The Building Code Enforcement Fund budget reflects a 13.1% increase due largely to an increase in staffing. The Crossing Guard Fund increased by 20% due to adding 28 new crossing guard posts to accommodate new school openings and support walkability of students to and from school. Mr. Battles noted that two first-time budgets were created: a Real Estate Acquisition Fund and a Parks Impact Fee Fund. Mr. Battles reiterated that EMS Transport has been moved to the General Fund. Mr. Battles presented information on Departmental Staffing and noted that 100 new staff positions are proposed in this budget, which still maintains a 15 year low ratio of overall number of employees to an expanding resident population they serve. In a corresponding Departmental Staffing slide, Mr. Battles stated that information in italicized text reflects positions added throughout the year by the Budget Review Committee (BRC) and that information in bolded text reflects new positions proposed in the budget. The Orlando Police Department added 15 COPSfunded police officers and one CAD Lieutenant and is requesting 23 Police Officers for School Resources Officers and patrol officers. The Orlando Fire Department added 35 EMS Civilian

4 Page 4 of 5 Transport positions and one CAD Fire Assistant Chief and is requesting one Civilian Manager. Families, Parks and Recreation added one Grants Coordinator and is requesting five Parks Maintenance staff positions and one Regional Recreation Coordinator in response to the increase in new and expanding City parks. The Office of Business and Financial Services added two Fleet Coordinators and Housing and Community Development added one Chief Planner position. Economic Development added one Short-Term Rental Compliance position, five Plans Review positions in Permitting, one CRA Project Manager and one EDIS Administrative Assistant and is requesting five Multi-family Code Enforcement positions, one Graphic Designer for the Downtown Development Board, one Project Coordinator for Affordable Housing, one Assistant City Planning Division Manager, three Permitting Review and Inspection positions and one Senior Development Review Tech position. Executive Offices is requesting one Administrative Assistant in the Office of Sustainability and one Smart Cities Project Manager. Public Works added one Permit Tech III position and the Transportation Department added one Assistant Traffic Control Supervisor and one Traffic Maintenance worker and is requesting one Parking Enforcement Supervisor. Mr. Battles presented information on Program Enhancements funding. The Orlando Police Department (OPD) received funding for its extra duty budget, which Mr. Battles noted was reimbursable. Other OPD budget enhancements include expanded crossing guard locations, additional overtime for CID and Communications, increased funding for radio equipment maintenance and funding for replacement rifles for all officers. The Orlando Fire Department had full funding for holiday and shift-differential pay as well as additional radio equipment, fleet and supplies. Public Works had an increased budget for litter crews. The Transportation Department had increased funding for special events temporary/seasonal staff, Sign and Signal Shop assessment and the Smart Cities effort. Families, Parks and Recreation received increased funding for temporary/seasonal workers, supplies and equipment required for new and expanded parks, After School All Star funding in new schools, and additional funding for parks, playgrounds and recreation centers renovations. Mr. Battles continued the presentation on Program Enhancements with the Office of Business and Financial Services receiving increased IT temporary/seasonal funding for Public Safety technology deployments, increased funding for Citywide facilities assessments and improvements, an initial budget for the new Real Estate Acquisition Fund, an annual budget for IT upgrades and IT security, and funding for City Hall s ninth floor conference and training rooms. Executive Offices received increased funding for the consolidation of the Blueprint and Minority Business Enterprise offices, the creation of the Office of Sustainability, an increased budget for each District office, and increased operating budget for the a new records warehouse. Economic Development received an increase in funding for vacant lot upkeep, short-term rental compliance and a new multi-family Code Enforcement team.

5 Page 5 of 5 Orlando Venues received increased funding for an expansion in parking for Leu Gardens and improved lighting at the Mennello Museum. Housing and Community Development received increased funding for the new affordable housing initiative. Mr. Battles continued the Program Enhancement presentation with information on School Resource Officer (SRO) funding. As a result of recent legislation, the number of SROs in each school should increase. The City currently supports 29 existing SRO positions with a percentage of that cost reimbursed by Orange County Public Schools (OCPS). In response to the new legislation, OPCS is requesting 23 additional SRO positions. Mr. Battles noted that of the 23 new positions requested by the Orlando Police Department, 15 of those would be SRO positions. The FY19 proposed Budget supports adding 15 additional positions, for a total of 44 SROs. Mr. Battles discussed the FY19 proposed Capital Improvement Program funding. Mr. Battles noted that the increase in the Capital Improvement Fund supports additional equipment for the police and fire departments, new and existing parks expansion and renovation, increased energy efficiencies and maintenance throughout City facilities, real estate acquisition and affordable housing funds, and further noted that the decrease in the Water Reclamation General Construction Fund does not reflect a reduction in projects or operation but rather the ebbs and flows of current projects status. The overall FY19 proposed Budget has a Capital Improvement Program reduction from $93.6 to $81.8 million dollars. Mr. Battles concluded the 2018/2019 Fiscal Year Budget presentation with a tentatively balanced General Fund Budget of $488,144,590 and an Other Funds Budget of $777,632,739. The next steps in the budget process were listed as a calendar beginning with establishing the millage rate at the July 23, 2018 City Council meeting, followed by the Mayor s State of the City Address on August 7, 2018, Commissioner Briefings throughout August and City Council Budget Hearings #1 and #2 on September 4 and September 17, 2018, respectively. At 10:48 a.m. the workshop was opened to comments and questions and discussion ensued. Mr. Battles recognized the Office of Management and Budget staff for their work on the proposed FY19 proposed Budget. At 11:08 a.m. the workshop was adjourned. Mayor Buddy Dyer City Clerk Denise Aldridge