Submitted By: Peter Brill
presenter
Presentation By: Tammi Haslam
end
Department: Finance
STAFF RECOMMENDATION (Motion Ready):
title
Adopt Budget Resolution 2022-130 amending the Fiscal Year 2021-2022 budget to appropriate funds from the General Fund Reserve for Contingencies to cover expenditures incurred as a result of a judgment for taxable cost in the amount of $67,472
end
OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, .
PROOF OF PUBLICATION:
N/A
body
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 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.
This 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.
Class Counsel advanced costs and expenses to bring this case to a successful conclusion. Florida law provides that “[t]he party recovering judgment shall recover all of his or her legal costs and charges. Class Representatives are the prevailing party in this action and are entitled to recover taxable costs from the City. On November 4, 2021, Class Counsel filed a separate motion seeking taxable costs from the City in the amount of $67,353.89. Class Counsel seeks reimbursement from the Common Fund for the remaining costs incurred and to be incurred to successfully conclude this case, but which are unrecoverable from the City as a taxable cost.
To date, Class Counsel has incurred $148,602.41 in total costs, taxable and non-taxable. The $148,602.41 in costs were reasonably necessary to bring this case to resolution. Costs of $67,353.89 are taxable costs to be paid by the City. The remaining $68,723.33 in non-taxable costs and any additional non-taxable costs should be reimbursed to Class Counsel from the $79,282,909.44 Common Fund.
FINDINGS AND CONCLUSIONS:
Judgment was granted on January 3, 2022 for the City of Ocala to reimburse taxable cost, plus any interest accrued until paid. This payment of $67,353.89 plus interest of 117.64 is for judgment for the class representatives who are entitled to recover taxable cost from the City of Ocala.
|
Description |
Amount |
|
Judgement |
$67,353.89 |
|
Interest p.a. |
4.25% |
|
Annual |
$ 2,862.54 |
|
Daily |
$ 7.84 |
|
15 Days |
$ 117.64 |
|
Total - Jan 18 |
$67,471.53 |
FISCAL IMPACT:
A combination of taxable cost, plus interest totaling $67,472, is required under the judgment. A transfer from the General Fund Reserve for Contingencies (001-099-999-513-81-99800) is needed to support the expenditure. The expenditure account is 001-099-950-999-81-31020.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
N/A
ALTERNATIVE:
N/A
BUDGET RESOLUTION 2022-130
A RESOLUTION AMENDING THE FISCAL YEAR 2021-2022 BUDGET TO TRANFER FUNDS FROM THE GENERAL FUND RESERVE FOR CONTINGENCIES TO COVER EXPENDITURES INCURRED AS A RESULT OF A LEGAL JUDGMENT TOTALING $67,472
WHEREAS, Florida law provides that the party recovering judgment shall recover all legal cost and charges; and
WHEREAS, class representatives are the prevailing party and are entitled to recover taxable cost; and
WHEREAS, to date, class counsel has incurred a total of $148,602 in taxable and non-taxable cost; and
WHEREAS, cost was deemed necessary by the circuit court of the fifth judicial circuit to bring the case to resolution; and
WHEREAS, on January 3, 2022, judgement was granted for the City of Ocala to pay taxable cost, plus interest in the amount of $67,472; and
WHEREAS, budget reserves will be used to support the unforeseen emergency expenditure incurred in fiscal year 2021-2022 that were a result of judgement.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, in regular session duly assembled as follows:
Sources:
001-099-999-513-81-99800 Reserve for Contingencies ($67,472)
Uses:
001-099-950-999-81-31020 Professional Services - Legal $67,472
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