Mayor Mike Miller and Councilmembers Chris Mundy, Mary Jones, Fred Richards, Joe Anglin and Monica Beatty (by phone)
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1 CALL WORK SESSION TO ORDER: City of Flowery Branch City Council Meeting Minutes Thursday June 15, :00 p.m. City of Flowery Branch City Hall 5517 Main Street, Flowery Branch GA, Mayor Miller called the meeting to order at 6:02 p.m. PLEDGE OF ALLEGIANCE: Mayor Miller led the Pledge of Allegiance. PRESENT: ABSENT: Mayor Mike Miller and Councilmembers Chris Mundy, Mary Jones, Fred Richards, Joe Anglin and Monica Beatty (by phone) None. Also present were City Manager Bill Andrew, City Clerk Melissa McCain, Planning Director Rich Atkinson, Finance Director Tammy Moon, Police Chief David Spillers and Attorney Ron Bennett. PUBLIC HEARING: There was no Public Hearing. UNFINISHED BUSINESS - WORK SESSION: Ordinance 532 to Fix the Ad Valorem Tax Rate for the City of Flowery Branch for the Tax Year 2017 and the Fiscal Year 2018 Finance Director Tammy Moon summarized the following from a PowerPoint presentation: Ordinance 532 is to adopt the Ad Valorem tax rate and levy the tax upon all property subject to taxation by the City of Flowery Branch. The net property value is $334,880,396 with the mill rate calculated below. Gross Millage Rate LOST Rollback Reassessment Rollback Net Millage Rate Director Moon reviewed the mill rate history and stated that from the mill rate was Years 2014 and 2015 the mill rate was increased to and in 2016 the mill rate was rolled back to Staff is suggesting that the mill rate remain consistent with last year and remain Continuing, Director Moon advised that the reassessment of existing real property increased by $25,840,684 but 46% of that or $11,969,788 was due to the sale and reassessment of the Tree Park Apartment complex which increased in assessment value from $31,539,630 to $61,464,100.
2 Page 2 of 13 Director Moon gave an example of a residence valued at $200,000 which is taxed at 40% or $80,000 times the mile rate of would pay a Flowery Branch tax bill of approximately $ Resolution FY 2018 Budget Finance Director Moon advised that the proposed budget has been available on the Flowery Branch website since June 1 st and made the following review: General Fund Revenues Property Tax: Reassessment of Existing Real Property estimated to increase revenue by $50,510 New or Improved estimated to increase revenue by $35,940 General Fund Expenditures All Departments: 2% COLA (Cost of living adjustment) - $25, % Merit increase - $25, Public Safety: New position Wages and Benefits $56,071 New Vehicle for new position - $30,000 Finance Director Moon summarized the following spreadsheet pertaining to revenues and expenditures in the General Fund. General Fund FY 2017 FY 2018 Approved Recommended Increase Percent Budget Budget (Decrease) Change REVENUES General Property Taxes $ 1,490,513 $ 1,610,967 $ 120, % General Sales and Use Taxes 860, ,500 21, % Selective Sales and Use Taxes 339, ,302 4, % Business Taxes 429, ,000 10, % Licenses and Permits 226, ,325 6, % Intergovernmental Revenues 11,100 11, % Charges for Services 19,250 21,450 2, % Fines and Forfeitures 411, , % Investment Income 4,000 4, % Contributions and Donations 6,100 6,000 (100) -1.64% Miscellaneous Revenue 43,249 44, % Fund Balance Reserves 600, ,058 (239,942) % Total Revenues $ 4,439,512 $ 4,365,463 $ (74,049) -1.67% EXPENDITURES General Government $ 943,589 $ 999,021 $ 55, % Judicial 155, ,093 2, % Public Safety 1,088,719 1,233, , % Public Works 508, ,586 21, % Culture and Recreation 49,810 49, % Housing and Development 370, ,261 (4,727) -1.27% Contingency 125, ,000 $ % Transfers Out 1,197, ,707 $ (293,538) % Total Expenditures $ 4,439,512 $ 4,365,463 $ (74,049) -1.67%
3 Page 3 of 13 Water & Wastewater Revenue Increase 2% recommendation of rate study. Water & Wastewater Expenditures 2% COLA (Cost of living adjustment - $5, % Merit increase - $5, Finance Director Moon summarized the following spreadsheet pertaining to revenues and expenditures in the Water & Wastewater Fund. Water & Wastewater Fund FY 2017 FY 2018 Approved Recommended Increase Percent Budget Budget (Decrease) Change REVENUES Water Charges $ 519,600 $ 529,992 $ 10, % Sewer Charges 923, ,276 18, % Penalties / Reconnect Fees 40,000 63,000 23, % Other Revenue 103, ,525 3, % Use of Retained Earnings 517, ,711 53, % Total Revenues $ 2,104,180 $ 2,213,504 $ 109, % EXPENSES Water / Sewer Administration $ 118,389 $ 140,209 $ 21, % Sewer Department 735, ,953 56, % Sewer Lift Stations 84,700 84, % Water Department 369, ,797 33, % Water Supply 77,500 73,000 (4,500) -5.81% Depreciation 310, , % Debt Service 403, ,845 2, % Uncollectible Bad Debts 5,000 5, % Total Expenses $ 2,104,180 $ 2,213,504 $ 109, %
4 Page 4 of 13 Finance Director Moon summarized the following spreadsheet pertaining to the SPLOST VII Capital Improvement Plan.
5 Page 5 of 13 Finance Director Moon summarized the following spreadsheet pertaining to The Local Resource Fund. LOCAL RESOURCES FUND (CAPITAL IMPROVEMENT PLAN) CAPITAL PROJECTS: Other Equipment - Financial Software 35, Lights Ferry Road Connection Debt Service 193, , , ,986 16,166 Paving Projects (Various Roads) 1.5 miles - 298, ,017 - Phone System 22,100 McEver Road Intersection & Paving 459,567 Mulberry/Spring Stormwater 75,000 Municipal Building Debt Service 333, , , , ,917 Local Resources Fund Reserves 195,069 36, ,676 7, ,975 TOTAL CAPITAL PROJECTS 1,314, , , , ,058 SOURCE OF FUNDS: LOST Collections 236, , , , ,000 Transfer In - Fund Balance 508, , , , ,000 Transfer In - General Fund 117, , , , ,341 Grant from LMIG (Paving Projects) 62,611 62,613 62,613 62,613 62,613 Local Resources Fund Reserves 390, ,069 36, ,676 7,104 TOTAL SOURCE OF FUNDS: 1,314, , , , ,058 Finance Director Moon summarized the following spreadsheet pertaining to The Tax Allocation District. Tax Allocation District Approved 2017 Budget Recommended 2018 Budget Increase / (Decrease) Percentage Change Total Revenues $ 150,000 $ 109,000 $ (41,000) % Total Expenditures $ 150,000 $ 109,000 $ (41,000) % Hotel / Motel Tax Fund Total Revenues $ 46,000 $ 46,920 $ % Total Expenditures $ 46,000 $ 46,920 $ %
6 Page 6 of 13 Total for All Funds Approved 2017 Budget Recommended 2018 Budget Increase / (Decrease) Percentage Change General Fund $ 4,439,512 $ 4,365,463 $ (74,049) -1.67% Water & Sewer Fund 2,104,180 2,213, , % Tax Allocation District (TAD) 150, ,000 (41,000) % Hotel / Motel Tax Fund 46,000 46, % SPLOST VII 1,460, ,133 (588,327) % Local Resources Fund 1,631,897 1,314,749 (317,148) % Total for all Funds $ 9,832,049 $ 8,921,769 $ (910,279) -9.26% Councilman Joe Anglin advised that the city has received increased revenue in franchise fees, SPLOST collections, insurance premiums and LOST collections and these increases should be sufficient to cover the needs of the city without increasing taxes. It was noted that LOST collections were set up to be a relief for property tax. Continuing, Councilman Anglin advised that he keeps seeing all the revenue increase and although there have been some added expenses, the city has seen a surplus each year which means the staff is operating efficiently and the revenue stream is coming in stronger then we expected when we created the budget. Councilman Anglin advised that he felt the city should proceed with the roll-back as the increase is not warranted and the city should not burden the taxpayers for this $50,000 when the city has received additional unanticipated revenue that is more than enough to cover the anticipated expenses. Further, Councilman Anglin advised that if the city is that desperate for the $50,000 then the budget needs to be cut back. This is being fiscally conservative. Councilman Anglin stated that as for the per diem that goes unclaimed every year, it should be used as a bonus for the staff at the end of the year as an incentive to stay employed with the city. Councilman Chris Mundy agreed with Councilman Anglin on the unused per diem and felt that should be given to the employees as a bonus. NEW BUSINESS -WORK SESSION: Annual Memorandum of Understanding with Homeland Security City Clerk Melissa McCain advised that this memorandum of understanding is an annual renewal for the use and access to the Systematic Alien Verification for Entitlements (SAVE) system. The SAVE Program provides users with access to an internet-based system operated by the U.S. Department of Homeland Security (DHS), United States Citizenship and Immigration Services (USCIS). The SAVE System verifies status by electronically comparing the information taken from a benefit-applicant s immigrant, non-immigrant, or naturalized and derived citizenship documents against DHS records.
7 Page 7 of 13 USCIS charges a fee for verification services. The transaction for an electronic initial verification request is $0.50. The SAVE System provides users an opportunity to edit or correct the initial verification request information, known as a retry initial verification request. The charge for a retry initial verification request is $0.50. If an initial verification request or a retry initial verification request requires additional verification, the charge is $0.50. Agencies without access to the SAVE System submitting paper-based Forms G-845, Document Verification Request, are charged $2.00 per case. A minimum monthly service transaction charge of $25.00 is automatically billed to agencies with verification activity during the month. Surplus Items and Auction Clerk McCain advised that staff is trying to go through items and equipment prior to the move to the new City Hall and the following items are ready to be considered for auction: The 2009 Receiver was part of the radio system from the prior owners of the Administration offices. It is unknown if this piece of equipment operates properly. The old sound board is from the City Council Chambers and has been having intermittent issues. The Time Machine has not been used since 2010 and is outdated. In the past, it was used by the Masonic Lodge but they now have a timing company with racer chip technology time their races. All three items are requested to be designated as surplus items and authorized to go to auction on June 16, 2017 June 20, 2017 utilizing the GovDeals auction site as has been done in the past. June 1, 2017 Special Called Meeting Minutes Clerk McCain advised that there were no changes. June 1, 2017 Meeting Minutes Clerk McCain advised that there were no changes. Resolution to be considered for the City of Flowery Branch, Georgia authorizing the Mayor, in consultation with the City Manager, to finalize and execute the 2017 Hall County Service Delivery Strategy and for the submission of same to the Georgia Department of Community Affairs. City Manager Andrew advised that this is a resolution simply allowing the Mayor to execute the Service Delivery Strategy with Hall County. Continuing, Manager Andrew advised that the actual agreement was supposed to be ready and delivered by the time of this meeting but that it has not yet been received.
8 Page 8 of 13 According to the City of Gainesville they had a copy delivered to them and they will be having a meeting with Hall County on June 16 th to review some minor changes with signing by all parties on June 20 th. Further, City Manager Andrew advised that the agreement gives the City of Flowery Branch the sewer district that was requested and the city requested a decrease in the Hall County mill rate for duplicate services and this has been accepted. This will mean the Hall County mill rate for city residents will drop by approximately.45 mills for 9 years beginning in A check for this year s taxes will be issued to the city in the amount of approximately $130,000 as a one-time payment. Manager Andrew will provide a copy to the council as soon as it is received. DEPARTMENT REPORTS: No reports. ADJOURNMENT WORK SESSION: Mayor Miller adjourned the work session at 6:30 p.m. CALL VOTING SESSION TO ORDER: VOTING SESSION Mayor Miller called the voting session to order at 6:31 p.m. PUBLIC COMMENTS: Michael Justice Lemon Grass, Flowery Branch Ga Mr. Justice approached the council and asked the council to consider creating a golf cart ordinance. The police have increased enforcement so there is a need to have a golf cart ordinance as so many other cities do. Continuing, Mr. Justice stated that there is a state code which allows the cities to create a golf cart ordinance to make it a friendlier environment for citizens to use a golf cart in their community. Mr. Justice will the clerk the information he has researched and put together for consideration. Robert Reece 6644 Trailside Drive, Flowery Branch, Ga Mr. Reece advised that he agreed with Mr. Justice and the need for a golf cart ordinance. Mr. Reece advised that he felt that the issue is due to miss communication and false information that Newland has sent out and the fact that the residents don t understand the State rules.
9 Page 9 of 13 Jeff Bennett 6534 Lemon Grass, Flowery Branch, Ga Mr. Bennett approached the council in support of Mr. Justice s request for a golf cart ordinance and advised that golf carts are fun and without the ordinance there are many people not taking advantage of using them. Jeff Whitcomb 6643 Trailside, Flowery Branch, Ga Approached the council and advised that he had been pulled over by a Flowery Branch police officer and was told that there were safety features needed for the carts. Mr. Whitcomb advised that a clear understanding of what we can and can t do is needed for our roads. Jeff Touwsma 7531 Breezy Lake Lane, Flowery Branch. Ga Mr. Touwsma - Approached the council and asked for the ordinance so everyone is clear on what can and can t be done. Chief Spillers advised that his overwhelming concern is the safety aspect of the golf carts. Chief Spillers advised that there have been many children driving the golf carts and that will not be tolerated and may result in parents getting tickets for allowing their children to operate said carts. Further, Chief Spillers advised that they will be having a meeting concerning golf carts. Manager Andrew advised that if a roads speed limit is under 35 mph, the driver of the golf cart is a licensed driver and all the safety features are installed as per State code then golf carts can be operated on the roadways now regardless if the city has an ordinance or not. The city can only make the law more restrictive, not less restrictive. Mr. Michael Justice advised that it is clear in State law that the city can make any changes to the golf cart code such as designated shared roads and designating trails. The city promotes it wants to be a vibrant city so let s take the $50,000 from the extra tax dollars and get some engineering done to complete a multi-use path to the marina and the lake and make this a vibrant city. CONSENT AGENDA: Surplus Items and Auction June 1, 2017 Special Called Meeting Minutes June 1, 2017 Meeting Minutes
10 Page 10 of 13 There was a motion made to approve the Consent Agenda as presented. MOTION: Fred Richards SECOND: Mary Jones AYES: Chris Mundy, Mary Jones, Fred Richards, Joe Anglin, Monica Beatty NAYS: None UNFINISHED BUSINESS - VOTING SESSION: Ordinance 532 to Fix the Ad Valorem Tax Rate for the City of Flowery Branch for the Tax Year 2017 and the Fiscal Year 2018 Attorney Bennett read the caption to Ordinance 532. There was a motion made to approve Ordinance 532 to Fix the Ad Valorem Tax Rate for the City of Flowery Branch for the Tax Year 2017 and the Fiscal Year MOTION: SECOND: Fred Richards Mary Jones Discussion: Councilman Anglin inquired on the use of the $50,000 in additional revenue the city would receive if the mill rate was not rolled back. Councilman Mundy suggested earmarking those additional funds for paving projects. Councilman Richards advised that the funds would go into the general fund budget to use as things arise. The city currently has stormwater issues and 100-year-old pipes in the ground and an emergency can happen anytime. Councilman Anglin advised that he felt it was important to designate those funds to a specific purpose if the city insists on not rolling back the mill rate. Councilman Anglin further stated that if the city can service a million-dollars in debt service then they are not in need of nickel and diming the residents to death for $50,000. It may not seem like a lot but once the escrow bills for shortages are sent out then the residents will feel the effects of this increase. Further, Councilman Anglin stated that the city will be receiving $130,000 for duplication of services so that should cover what is needed to cover the budgeted expenses and the mill rate should be rolled back. Councilman Richards advised that he supports a consistent millage rate in good economies and in bad economies. He doesn t want to have to go back and fourth to the residents and lower and raise the mill rate each year so then the tax payers don t know what to expect.
11 Page 11 of 13 Councilmember Monica Beatty stated that the past millage rates don t matter and that we need to consider what Flowery Branch needs today. The city roads are eroding, there are things that need to be done and our infrastructure needs to be fixed all over the city. Councilman Anglin inquired if Councilmember Beatty felt the extra $50,000 should be designated for a specific purpose. Councilmember Beatty stated yes, that is what is needed such as our roads, drainage etc. Councilman Richards gave an example and stated that there is a mile of road in his subdivision with 90 residents along that mile of road paying approximately $ in taxes a year which amounts to $270,000 over 20 years. The average life of a road is 20 years and the cost to currently replace 1 mile of road is $300,000. Looking at these figures, the residents aren t paying enough to pave their road much less for the other services such as administration and police that are being provided to them by the city. Councilman Anglin asked if the council considered the infrastructure needs when they approved to use 60% of SPLOST for the new city hall project. The city is now suffering because 60% of SPLOST went to the city hall project and everyone knew that there were infrastructure improvements needed and those SPLOST funds could have assisted in covering those expenses. Councilman Mundy advised that the city has received more then what was estimated with increased insurance premiums and additional revenue from permitting. The mill rate can be rolled back and the city can still accomplish what has been proposed in the budget. AYES: Mary Jones, Fred Richards, Monica Beatty NAYS: Chris Mundy, Joe Anglin Resolution FY 2018 Budget Attorney Bennett read the caption to Resolution There was a motion made to approve Resolution FY 2018 budget. MOTION: SECOND: Fred Richards Mary Jones Discussion: Councilman Anglin advised that he has no issues with the additional items budgeted for such as an additional police officer, additional car and staff raises but he is against the additional $50,000 in the budget due to not rolling back the mill rate so he will be voting no. AYES: Mary Jones, Fred Richards, Monica Beatty NAYS: Chris Mundy, Joe Anglin
12 Page 12 of 13 NEW BUSINESS - VOTING SESSION: Annual Memorandum of Understanding with Homeland Security There was a motion made to approve and authorize the Mayor to execute the Homeland Security Memorandum of Understanding for the SAVE Program. MOTION: Joe Anglin SECOND: Chris Mundy AYES: Chris Mundy, Mary Jones, Fred Richards, Joe Anglin, Monica Beatty NAYS: None Resolution to be considered for the City of Flowery Branch, Georgia authorizing the Mayor, in consultation with the City Manager, to finalize and execute the 2017 Hall County Service Delivery Strategy and for the submission of same to the Georgia Department of Community Affairs. Attorney Bennett read the caption to Resolution There was a motion made to approve Resolution and authorize the Mayor, in consultation with the City Manager, to finalize and execute the 2017 Hall County Service Delivery Strategy and for the submission of same to the Georgia Department of Community Affairs. MOTION: Chris Mundy SECOND: Fred Richards AYES: Chris Mundy, Mary Jones, Fred Richards, Joe Anglin, Monica Beatty NAYS: None Councilmember Beatty left the meeting at 7:24 p.m. EXECUTIVE SESSION: There was a motion made to enter Executive Session at 7:24 p.m. for matters of personnel. MOTION: Chris Mundy SECOND: Joe Anglin AYES: Chris Mundy, Mary Jones, Fred Richards, Joe Anglin NAYS: None There was a motion made to reconvene open session at 7:45 p.m. MOTION: Joe Anglin SECOND: Fred Richards AYES: Chris Mundy, Mary Jones, Fred Richards, Joe Anglin NAYS: None
13 Page 13 of 13 ADJOURNMENT: There was a motion made to adjourn at 7:46 p.m. MOTION: Joe Anglin SECOND: Chris Mundy AYES: Chris Mundy, Mary Jones, Fred Richards, Joe Anglin NAYS: None
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