City Council - public_hearing

Okay, now it's 5.01 p.m. Good evening, commissaries and the finance team. We're here tonight for the first one. From Dua Dengar, a useful opinion agrees with the tax rate and budget for the city, the Central Development Council and the Central City NID, the southern part. This year's budget process came when Florida voters were ready to consider Amendment 3 in the November voice letter. Hopefully in the next 60 days, everyone will get information about the potential of the third amendment, which will have a significant impact on the income of property taxes in the future for the local government in all parts of the country. This includes us and our ability to provide services that are entrusted to our citizens. So we want our citizens to understand how the income of property taxes benefits important services and what it means to reduce the income in the future. Therefore, the staff has organized a short educational presentation that we started to share with the citizens and organizations who want to learn more. And we think tonight, before we listen to the official opinion for tonight's action, this will be a good opportunity for the staff to share the presentation. And you can all have it, and if you want to bring it to some of your home owners' associations, we will be happy to share it with you too. So, Jason, please go ahead.

Thank you, Wale. Good night, everyone. As mentioned, the mayor, the mayor's office, as well as the communication and financial team have conducted presentations for various meetings and community organizations to help educate them about what is being financed by property taxes and what are the potential impacts of Amendment 3. So, I will convey the presentation version to you here today. As a start, what will be done by Amendment 3? Today, the amount of value deducted from the property tax on residential property for a city like ours is $50,000. If Amendment 3 is passed, residential property deduction will increase to $150,000 in the calendar year 2027, followed by $20,000 in the calendar year 2028. In addition, the amendment places the foundation for the potential for the removal of the full tax of residential properties in the future, even though it is not mentioned when or how it may happen. We have spent most of our time discussing the impact on the exclusion of residential areas, but it is also necessary to note that the amendment will reduce the value growth limit for non-residential properties from 10% at the moment to 5%. So, whenever we talk about property taxes, we always want to redirect our focus back to how the appearance of property taxes look like. And it's important to remember that it's only about 35 cents from every dollar that goes into the City Government of Orlando. The rest is divided into districts, schools, municipalities, water management districts, and the City Development Council if you are in that area. We will focus on the city, but it is important to remember that the reform of the property tax also affects other organizations, except schools. So, what kind of Orlando City Property Tax are you using? First and foremost, for public safety. This provides the protection of police and fire extinguishers 24 per 7 through emergency response officers. In addition, this funds various garden and recreation facilities, not only its facilities, but also the programs and activities there. Property taxes fund the maintenance of various infrastructures, including sidewalks, roads, and traffic lights, as well as supporting small and local businesses, also events throughout the year in the whole city. However, it is important to remember that property taxes do not cover the operational costs of our regional companies. So, even though the management of solid waste or wastewater may be a government service in general, they raise the cost to cover the cost of the service directly. Therefore, it is important to remember that there are other sources of funding for the service. If the rent per day is paid by the residents who buy a house with an average price of less than Rp. 7,000 per day, so at the price of coffee or certain snacks, the residents get the services that we have just discussed. Public safety, infrastructure maintenance, parks, playgrounds, environmental centers, and many more. However, it is no longer doubted that the price of houses and property taxes continue to increase. However, while the average selling price has risen quite a bit, Florida has the SAFE Our Homes rule that limits the increase in the value of property taxes. Only 3% of the annual CPI is left, which is lower. So, there is already protection before we do the soundproofing of this amendment, which helps the owners of old homes, including those with permanent income from significant changes in their property taxes every year. To illustrate the impact of the SAVE OUR HOMES rule, this slide gives an example of how much the price of a house increases, as well as the large protection provided by the rule. The middle column shows the average house price at this time that we use to calculate the property tax figure of around Rp. 7 per day that we showed previously. The left column shows the same calculation for a house 10 years ago. The results can vary depending on the data you use, but the average house price basically rose twice over the last 10 years. Even so, if you really buy a house with that average price to be left 10 years ago, the right column shows how much of your property tax with the presence of protection, Save Our Homes. It does go up, right? But only about a third of it compared to the price of a house that goes up more than twice in the same period. Although property tax income has increased, the city's operational cost is the same, as is the case with households throughout Florida. For example, the cost of building a fire extinguisher post has increased more than twice in the last 10 years. The cost of jackets and protective pants or bunker equipment for fire extinguishers has also increased twice. The cost of anti-bullet tear gas for police officers and traffic lights has also increased significantly. And even though the amount of money is perhaps the smallest, the cost per gallon of chemical materials that we use to clean the swimming pool in the city has almost increased threefold during this period. This is just an example of what we bought 10 years ago and still buy until now. You also have new technologies and expectations, especially in public safety, which was not even 10 years ago. For example, maybe physical cameras or newer, you are starting to see the implementation of drone technology. In the face of this increase in costs, we have balanced the budget to maintain savings. achieve a strong credit rating, and accommodate substantial growth. All of this by maintaining our tax rate for more than a decade. Now, let's see what the impact is on the city if Amendment 3 is passed. It's important to remember that. So, if Amendment 3 is passed, what is put in place locally in Orlando? we will see the impact of the increase in the local tax exemption starting from fiscal year 2008. At that time, the exemption will increase to Rp150,000 in the first year of implementation, and that means a reduction of the city's income of around Rp30 million. The reduction will expand to around Rp50 million in the second year of implementation when the local tax exemption increases further to Rp250,000. During the fiscal year of 2029, there was quite a big uncertainty because of the amendment that allowed for continuous increase in exclusion. Or the removal of the property tax completely on the property where it lives, but it is still very open regarding how or when it may happen. However, at the extreme point, the removal of all property tax on the house will only have an impact on the loss of the city's income up to around 80 million. As an example, that's about 10% of our total public funds income or 20% of the property tax income in the public funds, which is about half of the public funds income. Remember that Amandement currently does not provide alternative sources of income to replace the lost property tax, it also does not protect the police and the fire extinguisher from the lack of income. This was specifically discussed in several previous revisions, but did not enter the final version. This slide shows the impact of income in another way. These bars represent inflation and population growth from time to time, while the line represents the total income of the city's public funds during the same period. Although the time may be a little slow, the general fund income is about the same as the inflation and population growth until the year goes by, and you can see that it is more or less consistent with the fiscal year budget of fiscal year 2027. In fiscal year 2028 to 2030, the graph reflects what is expected to happen if the first two years of the reformation that is known to happen. You can see that although we are still anticipating the growth of income, we are slowly leaving behind what is needed to balance the projection of inflation and population growth. We are lucky in Orlando because the percentage of our property tax revenue from home property is much lower than that of other communities. But over time, we are still convinced that there will be a decrease in the level of service. What does that mean? First, regarding public safety, even though direct cuts for public safety are not possible. Because of the loss of income for several years, it is unlikely that we will be able to continue to add staff to the police and extinguish fires as we have done. As the city grows, this can result in slower response times or less frequent patrols in your environment. There may be delays in maintaining important infrastructure such as roads and sidewalks. Once again, we may have to be satisfied with the level of funding, at least for several years, even though the cost continues to increase and the region is developing. There may be an impact on the program or operating hours in parks, football fields, and our environment centers, or lack of support for our partners who help those in need, or provide support for art and culture organizations that make our city more alive. We can also see the impact on funding that we give to economic development organizations and programs that support our small businesses. Considering the importance of public safety, let's discuss a little more about the impact on their level of governance. Once again, if the reform is carried out, it is unlikely that we will be able to increase public safety staff in the next two or three years, while we lose our current income. And one of the measures we use to assess our staff is the ratio of emergency response officers to the number of residents. After the budget for the year 2027, this graph shows what will happen to the ratio of police staff and fire extinguishers compared to our population growth projections. Once again, assuming that we will no longer add positions after this year, It's hard to determine the turning point where you will feel the impact. In response, however, what can be seen is that in fiscal year 2030, we will definitely be at a lower staff ratio than ever in recent history. The point is, the Police and Fire Department of the year 2027, which is included in our current budget, may have to be the same department that served the city in 2030 and so on in this scenario. If the city wants to try to maintain the level of service from time to time, if the security is broken, we may need to look for an alternative income. The lost property tax can be replaced with a higher new cost, which tends to be unfair because it burdens households or low-income homeowners. You may pay a fee to enter a certain park to rent a pavilion room or maybe hold an event in the back of the city at the atrium. We have to see how much the cost is to provide all these services and maybe there is an impact on the cost. In addition, the city may have to consider raising the tax rate. Remembering that the value of the property where you live will be released. Any increase in burden will disproportionately fall on the property, not where we live, including investment and commercial properties, including your apartment complex. Individuals, businesses, and other organizations may have to pay this fee, which for business is possible, means it will be burdened on their customers. And that may increase the price you have to pay or even the city pays for goods and services. I will say, renting by complex commercial apartments is a special concern in our region, considering that the majority of the inhabitants of Orlando are tenants. The fact is more than 60%. And the tenant will not benefit from the third amendment and potentially face higher rental prices because their complexes may be affected by higher taxes. So, for you and your constituents, the city has prepared a website at orlando.gov slash propertytexas, which contains a lot of information that is displayed on this slide, and we continue to update our budget information on the budget page at orlando.gov slash budget. Listen to today's budget opinion, which is the first of two sessions for fiscal year 2027, and if the reform is approved, we will most likely see an impact on the next cycle in fiscal year 2028. As we have said in July, we have begun to prepare for the possibility, and if the reformation is approved, we will take further action at that time. Thank you, Mr. Mayor.

Okay, we will immediately listen to our budget, but if you have any feedback and want to give suggestions for the presentation or use the presentation, just contact Jason and he will meet you at another time next week or more for that. Okay, we will turn to the city's opinion first. This is the first of the two public opinions for setting the tax rate and budget for the City of Orlando for fiscal year 2027. According to this first opinion, the City Council will consider adopting the current tax rate and budget. According to the second opinion, the City Council will consider adopting the final tax rate and budget. Mr. Panitra, can you read the title of the current tax rate resolution?

The Resolution of the City of Orlando, Florida, which stipulates the Ad Valorem tax rate on valuation properties and the list of private property tax in the year 2026.

The tax rate stipulated for the City of Orlando in fiscal year 2026-2027 is 6.6.500 million, which is 4.10% higher than the rate that was adjusted back to 6.3879. Is there a need to address the tax rate stipulated? Motion by Sihan, supported by Commissioner Rowe. Jason, please give a comment.

On July 13, the City Council agreed on a tax rate of as high as 6.65, so that the application that is appropriate can be made to the property assessor according to the date and time of August that is set for the trim reporting process. The tax rate is in the parameters outlined by the State Partition Formula, which has not changed since the previous year and aims to maintain the city's level of service.

There is no request for public comment. Is there a discussion? Because none of those who agree with Mosi Harap show by saying, yes, yes. Those who oppose it must be agreed. Ms. Itera, please present the title of the budget resolution.

A resolution from the city of Orlando, Florida, which adopts the annual budget of the city of Orlando, Florida for the fiscal year started on October 1, 2026 and ended on September 30, 2027.

Is there a time to adopt it? Adopted by Commissioner Sihan, supported by Commissioner Capin.

On July 13, we have submitted a balanced initial budget proposal. The summary of the budget has been delivered to each commissioner and has been included in the City website since the end of July. In the July 13 presentation, I said that this is a draft of work and revision that may be carried out as we receive more information and improve our estimates. In the budget issued today, there is only a small change compared to what was previously presented. The total budget for the city is as big as Rp1,681,977.97, which means Rp1,062.67 or 0.1 percent higher than the initial budget. The overall change, especially, is the result of our innovation and perfecting our estimates since then. From the total, the general fund budget remains unchanged as much as Rp. 799,999,934.44 in 2015, but note that there are some changes in the fund. This is especially related to the formation of a new room arrangement division in the executive office and moving some functions that are already in it. The new budget proposal has been delivered to the commissioners last week and has been approved through the Agenda of the City Council and on the City Budget Division website.

We do not have a public permit. If none of you agree with this motion, please show it by saying yes. We reject it.

So, the budget has been approved.

Okay, let's move on to These are the first two general opinions for setting the tax level and budget for the Central City Development Council for fiscal year 2026-2027. In this first opinion, the City Council will consider the implementation of the tax level and the current budget. In the second opinion, the City Council will consider the implementation of the tax level and the final budget. Mr. Panitera, can you read the title of the tax resolution for DDB?

The Resolution of the City of Orlando, Florida, states that for the Development Department of the City-City, the rate of Ad Valorem tax on real property is valued in the Development District of the City-City in 2026.

The tax rate for the fiscal year of 2027 is 1 million, which is 1.82% higher than the return rate of 0.9821. Is there a motion to approve the next tax rate? Second. Moved by Commissioner Rose, supported by Commissioner Capin. Jason.

On July 13, the City Council, under the name of the Central City Development Council, set a tax rate of 1.0 Songo. Like the city's tax rate, the DDB rate has been assigned to the property assessor before the end of August for the notification process. The tax rate is in the parameters outlined by the State Partition Formula, unchanged from the previous year, and to maintain the program carried out by the Council.

We do not have a request for public comment. Is there a discussion? If not, everyone agrees with Mr. Harop to show by saying yes. Those who reject must be dismissed. Next, Ms. Panitra. What is the name of the budget resolution?

The Resolution of the City of Orlando, Florida, which adopts the budget of the City-Center Development Council for fiscal year starting October 1, 2026 and ending September 30, 2027. Is there a motion?

A motion by Commissioner Burns, supported by Commissioner Ross Jasen.

The total budget for the Central City Development Office is Rp. 4,060.50.58. The amount is the same as that displayed in the budget for July 13th. The budget material that contains this information has been handed over to each commissioner and posted on the City website since the end of July.

We do not accept public requests. Is there a discussion, Commissioner Siang?

Since the beginning of this afternoon's discussion, I have checked the format and everything in the budget, and I want to ask that we have a year-to-year comparison column for the GDP budget. And we must follow the practice of standard fiscal comparison, which will make it easier for us to determine when changes are made.

Okay, we will record it, and do you want us to prepare it for you before the second meeting later? It's okay.

I've done it myself, but it's very difficult, so I want to have it in a more consistent format. Okay, thank you. The discussion goes on.

Because none of you agree with this motion, I hope you agree. Those who reject the motion are accepted. Okay, let's continue to downtown South. Out. This is the first of two public opinions for the adoption of the tax rate and budget for the District of Environmental Improvement, Donton Sot, for the fiscal year 2026-2027. In this first opinion, the City Council will consider the adoption of the tax rate and budget. In the second opinion, the City Council will consider the adoption of the tax rate and budget. Nyonya Panitra, can you read the title of the tax rate resolution?

The Resolution of the City Council of Orlando, Florida, and the Council of the District Directorate of Environmental Improvement, Downtown South, which sets the ad valorem tax rate as large as $1 per thousand from the value of real property tax, which is not excluded, which is located within the jurisdiction of the District of Environmental Improvement, Downtown South, provides certain findings, provides the adjustment of the administrative tariff according to the Florida Law, regulates the tax collection, separation, correction of written errors, withdrawal of controversial resolutions, and effective date.

The property tax rate for Donton Salt NID for fiscal year 2020-2027 is 1 mil, which is 5.2% higher than the adjustment rate of 0.95%. On June 10, the Donton Salt NID advisory committee recommended its tax rate and on July 13, the City Council, under the name of Donton Salt NID, set a tax rate of 1.0.

Similar to the city tax rate, the rate has been assigned to the property assessor according to the date and time of August for the process of receiving information. The rate of the tax is in the parameters outlined by the sectional state formula, which has not changed since the previous year, and is intended to provide administrative projects and infrastructure in the district.

We do not have a public request. Is there a discussion? If not, everyone who supports the motion is expected to show by saying yes. Those who oppose, the motion is accepted. The motion is agreed to terminate the resolution of the budget.

The Resolution of the City of Orlando, Florida, and the Directorate of the District of Environmental Improvement, Downtown South, which adopts the fiscal year of 2026-2027 for the District of Environmental Improvement, Downtown South, provides certain meetings, provides certain budget accrual procedures, provides for separation, approves the dispute resolution, and the date of action.

The total budget for watching SOT and ED is Rp. 1,032,222,223. This is the same budget as the one presented at the 13th budget meeting. The budget material that contains this information has been handed over to each commissioner and posted on the City website since the end of July.

We do not have a request for comment or discussion. There is none. All those who support Mosi Harap, show it by saying, yes, I want to protest.

So, Mosi is accepted.

Without further ado, we will hold a meeting of the City Council and we will hold a meeting of the Board of Directors for the Development District. The Donton South environment, which we happen to be heading to, This is the first of two hearings of the public opinion on the adoption of the tax rate and the budget for the District of Environmental Improvement of Downtown South for the fiscal year of 2027. In this first hearing of the public opinion, the Board of Directors will consider adopting the tax rate and the proposed tentative budget. In the second hearing of the public opinion, the Board of Directors will consider adopting the tax rate and the final budget. Ms. Panetera, can you read the title of the resolution?

Orlando, Florida, and the Directorate of the District of Environmental Improvement, Downtown South, who set up an ad valorem tax with a dollar rate of one per thousand dollars from the value of real property tax that is not excluded, which is located within the jurisdiction of the District of Environmental Improvement, Downtown South, provide certain findings, provide adjustment of the administrative tax rate according to the Law of Florida, provide tax collection, provide separation, correction of copyright infringement, withdrawal of binding resolutions, and effective date.

Motion by Commissioner Sihan, second by Commissioner Sjapin. The estimated tax rate for the Downtown South Environment Improvement District for the fiscal year 26-27 is 1 million, which is 5.26% higher than the rollback rate of 0.75 doses. Jason.

On June 10, NID Downtown South recommended its tax rate and on July 13, the NID Downtown South Board of Directors set the tax rate as 1.0. Just like the city's tax rate and the GDP tax rate, the rate has been assigned to the property assessor before the end of August for the process of interim reporting. The tax rate in the parameters outlined by the State Partition Formula did not change from the previous year and aims to provide administration as well as infrastructure projects in the district.

We do not accept public comment requests. Is there a discussion? Because there is none, everyone who agrees with this motion hopes to state by saying yes. They rejected. Then the motion is accepted. The name is Secretary. The title for the budget resolution.

The Resolution of the City Council of Orlando, Florida, and the Council of Directors of the District of Environmental Improvement, Downtown South, adopted the fiscal year budget for the District of Environmental Improvement, Downtown South, to provide certain meetings, provide certain budget accrual procedures, provide separation, correction of typos, removal of controversial resolutions, and effective dates.

Moved by Commissioner Sihan, seconded by Commissioner Capin,

The total budget for NID Downtown South is Rp. 1,222.23 million. This is the same budget that was presented to the 13-July budget. And the budget material that contains this information has been handed over to each commissioner and posted on the City website since the end of July.

We do not accept public requests. Is there any discussion? Because there is none. All those who agree with this motion hope to state by saying yes. Those who reject, then the motion is accepted. Without further ado, we will close the meeting of the Board of Directors. We will reopen the meeting of the City Council. Only for the purpose of saying thank you to Jason and the financial staff. We will give appreciation and attention that is right for you to hear the second opinion. I want to praise everyone. This is the most extraordinary opinion of the budget that we have ever had. We have no evidence and only one question or comment. Done. Without any other presentation, we would have finished in 15 minutes. But the presentation is needed. And we need to discuss it further in the next 60 days. Thank you, Sir. Wait a minute. The court is closed.

No, sorry. I'm sorry about that. Jason, after I considered my concerns about DDB regarding columns and comparisons in a consistent format, I want to have it. For this year, because of the cut in funding, so that we can consistently ensure that we know what happens with the funding. So, yes, I want to have the next meeting.

Okay, I will contact you and your team to clarify the format as you wish. Thank you, sir.

Okay, the court is closed again.