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04/12/2007 CHARTER REVIEW COMMITTEE CITY OF CLEARWATER April 12, 2007 Present: Jay E. Polglaze Chair Howard Warshauer Vice-Chair – arrived 4:31 p.m. William Blackwood Committee Member – arrived 4:32 p.m. Frank L. Dame Committee Member Elizabeth Drayer Committee Member Candace Gardner Committee Member Joseph Harra Committee Member Joshua Magidson Committee Member Kathy Milam Committee Member Alex Plisko, Jr. Committee Member William Wallace Committee Member Absent: Joyce E. Martin Committee Member Also Present: Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Rosemarie Call Management Analyst Brenda Moses Board Reporter The Chair called the meeting to order at 4:30 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2. Approval of Minutes – March 22, 2007 Member Milam requested that the minutes reflect her absence. Member Dame moved to approve the minutes of the regular meeting of March 22, 2007, motioncarried as amended. The was duly seconded and unanimously. 3. Presentation – Margie Simmons, Finance Director Finance Director Margie Simmons distributed handouts regarding debt issuance and financing and reviewed the City’s ratio of outstanding debt over the last ten years. In response to questions, Ms. Simmons said most governments have spending limits in their charters or ordinances. Between 25% and 30% of the City’s budget comes from property taxes. The remainder comes from franchise and user fees, etc. Should the Legislature change property appraisal methods, City property tax revenues would be reduced. Discussion ensued regarding the provision in Article IX requiring referendum approval of revenue bonds for projects greater than $1 million, with exceptions for public health, safety, industrial development, refunding, and projects validated by the court. Charter Review 2007-04-12 1 Ms. Simmons said this restriction costs the City money, delays projects, increases project costs, and could affect the City’s ability to rebuild some structures in a timely manner following a natural disaster. Only Sarasota County’s charter has a similar provision, which has required unnecessary expenditures by the county. Ms. Simmons suggested that the Charter not include this limitation, as other checks and balances are in place. Suggestions were made to increase the limit or remove it, as it no longer is practical. Ms. Simmons said removing the limitation would require a referendum for every project above zero dollars. It was suggested the entire sentence regarding the $1 million provision be deleted. It was commented that the Charter serves as a mechanism to establish a government and limitations regarding debt, spending, etc. belong in ordinances. motion Member Magidson moved to delete sentence two of Article IX. The was duly seconded. Discussion ensued. Concern was expressed that removing the sentence could empower the Council to approve a $1 billion project. Ms. Simmons said the City only can issue bonds if it has an identified revenue stream to cover repayment. She did not know of any projects not realized because of this provision. Upon the vote being taken, Members Blackwood, Dame, Gardner, Harra, Magidson, Milam, and Plisko and Chair Polglaze voted “Aye”; Members Warshauer, Drayer, and Wallace carried. voted “Nay.” Motion It was questioned if annual public hearings on the budget could be scheduled earlier in the budget planning process to allow public input for review and possible incorporation into the budget. Ms. Simmons reviewed the process for budget public hearings, including staff, City Manager, and Council preparation time. She said previous public budget presentations mostly garnered comments from the few residents in attendance that complimented staff’s preparation of the budget. 4. Discuss Ordinance Initiative Petitions The City Attorney said Clearwater has one of the lowest number of voter signatures required to qualify to petition for items on the ballot. The billboard sign initiative in the 1980s was not placed on the ballot, as the Council adopted an ordinance instead. 5. Discuss Charter Amendment Petitions and 6. Discuss Ordinance Referendum Petitions The City Attorney reviewed requirements for charter amendment petitions and ordinance referendum petitions. Other Charter Review 2007-04-12 2 . . . Discussion ensued regarding the frequency of Charter Review Committees as stated in Section 7.02. It was felt reviews are too frequent, with the last meetings held in 2003. It was suggested that the frequency of meetings be tied to a specific number of years, not elections. Member Magidson moved that Section 7.02 be amended to read: "The Council shall appoint a charter review advisory committee in January 1994, and at least every seven years thereafter provided the appointments are made in January of a year preceding a city election. " The motion was duly seconded and carried unanimously. It was requested the Committee review a previously distributed article regarding the significance of a municipal charter, as the article is succinct. Staff reported that the Supervisor of Elections will speak regarding election dates at the April 26, 2007 meeting. Consensus was to invite Dr. Susan MacManus of the University of South Florida to the May 24, 2007 meeting, which will be held at the Main Library. 7. Adiourn The meeting adjourned at 5:56 p.m. Charter Review 2007-04-12 3