Submitted By: Emory Roberts
presenter
Presentation By: Tammi Haslam
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Department: Budget
STAFF RECOMMENDATION (Motion Ready):
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Adopt Budget Resolution 2022-150 amending the Fiscal Year 2021-2022 budget to transfer funds from the General Fund Reserve for Contingencies to cover expenditures incurred as a result of legal notices totaling $55,029
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On February 20, 2014, Class Representatives filed a class action lawsuit against the City challenging the City’s Fire Fee as an unconstitutional tax imposed in violation of Article VII, Section 1(a) of the Florida Constitution. Class Representatives requested the trial court declare the Fire Fee unlawful and order class wide refunds to the greatest extent permitted under law.
On June 19, 2020, the Fifth District Court of Appeals (DCA), in a 14-page appellate decision, reversed the trial court and ruled the City’s Fire Fee was an unconstitutional tax. On October 11, 2021, the Court held a hearing on Class Representatives’ Motion to Compel the City to Fund the Common Fund. The Court found the Fifth DCA’s mandate was the final judgment in the case, the Fifth DCA had resolved all legal issues and properly considered and disposed of all the City’s defenses. The Court granted Class Representatives’ motion, determined the City had collected $79,282,909.44 in illegal taxes from class members since February 20, 2010, and ordered the City to deposit the illegal taxes into a separate fund (the “Common Fund”) within sixty (60) days to be disbursed upon further order of the Court.
The Court reserved jurisdiction regarding all remaining aspects concerning management
of this class action, including disbursement of the Common Fund and payment of refunds, class
representative service awards, attorneys’ fees, and costs.
Additionally, the Court ordered all class members be notified, at City expense, within 30 days after the date of the last order.
FINDINGS AND CONCLUSIONS:
On March 13, 2022, the City’s 3rd party attorney, GrayRobinson, P.A., notified the City that they received multiple quotes and recommended using Notice.com to mail out notices to all class members.
FISCAL IMPACT:
A transfer from the General Fund Reserve for Contingencies is needed to support the notice expenditure of $55,029.
001-099-999-513-81-99800 ($55,029)
001-099-950-999-81-31010 $55,029
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
N/A
ALTERNATIVE:
N/A
BUDGET RESOLUTION 2022-150
A RESOLUTION AMENDING THE FISCAL YEAR 2021-2022 BUDGET TO TRANSFER FUNDS FROM THE GENERAL FUND RESERVE FOR CONTINGENCIES TO COVER EXPENDITURES INCURRED AS A RESULT OF MAILING LEGAL NOTICES TOTALING $55,029
WHEREAS, Florida law provides that the party recovering judgement shall recover all legal cost and charges; and
WHEREAS, on June 19, 2020, the Fifth District Court of Appeals reversed the Trial Court’s decision and ruled the City’s Fire Fee was an unconstitutional tax; and
WHEREAS, on October 11, 2021, the Court held a hearing on the motion for the City to create a Common Fund; and
WHEREAS, the Court granted Class Representatives’ motion for judgement totaling $79,282,910; and
WHEREAS, on March 1, 2022, City Council approved a taxable draw-down loan totaling $60 million; and
WHEREAS, the City had until April 4, 2022 to fund the Common Fund; and
WHEREAS, the City had to mail notices to all class members; and
WHEREAS, budget reserves will be used to support the unforeseen expenditure incurred in fiscal year 2021-2022 that were a result of the judgement.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, in regular session duly assembled that the fiscal year 2021-2022 budget be amended as outlined below:
Sources:
001-099-999-513-81-99800 Reserve for Contingencies ($55,029)
Uses:
001-099-950-999-81-31010 Professional Services - Other $55,029
This resolution adopted this ______ day of ______________________, 2022.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire Bethea Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
Robert W. Batsel, Jr.
City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Sandra Wilson
City Manager