Loading...
08-11-04 Budget Workshop MinutesA 1~ . MINUTES OF THE BUDGET WORKSHOP MEETING OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBERS, 800 SEMINOLE ROAD, ON WEDNESDAY, AUGUST 11, 2004. City Commission Members present were: John S. Meserve, Mayor Richard M. Beaver, Mayor Pro Tem Paul B. Parsons, Commissioner Sylvia N. Simmons, Commissioner J. Dezmond Waters, III, Commissioner Also: Jim Hanson, City Manager Rick Carper, Public Works Director John Campbell, Deputy Police Chief George Foster, Human Resources Director Donna Kaluzniak, Utilities Director David Thompson, Public Safety Director Maureen King, City Clerk The meeting, which was held for the purpose of reviewing the proposed operating budget for fiscal year 2004/2005, was called to order at 5:00 p.m. by Mayor Meserve. Police and IT Department Director Thompson reviewed the Police Department budget and indicated that no additional personnel were being requested. He said the department would focus more on crime prevention this year. Director Thompson distributed a list of estimated costs related to the Super Bowl, a copy of which is attached as Exhibit A. He indicated that some venues had been reserved for private parties and he expected that his officers would work a considerable amount of overtime and they would be training for traffic and crowd control. Policies and Procedures Nelson VanLiere distributed written operating budget policies for drafting and presenting future budgets and reviewed this document with the City Commission. The City Manager requested that Commissioners review this material and let him know if they would like any changes to be made. A copy of Mr. VanLiere's handout is attached as Exhibit B. Personnel and Benefits George Foster reported that there were 154 employees on the payroll -119full-time employees, 12 part-time employees, 181ifeguards, and 5 elected officials. Commissioner Beaver noted that there is "` always heavy activity in the Code Enforcement Department and wondered if another full- or part-time officer should be hired. The City Manager will provide the City Commission with the estimated cost to add one additional employee in Code Enforcement. „~* Page two ~" Minutes -Budget Workshop August 11, 2004. Mr. Foster reported that pursuant to previous Commission action, all employees would receive a pay increase equal to 3% of the mid-point of the pay scale for their position. A cost of living allowance (COLA) was not included in the budget but the City Manager recommended a 3% COLA. Mr. Foster proposed increasing employee contributions to the pension plan and said that this was being negotiated with the unions. Mr. Foster also pointed out that Commissioners' salaries would also be adjusted at the same time and at the same rate as the salaries of other city employees. Nelson VanLiere reported that the City currently had a defined benefit plan and pointed out that the Pension Committee had recommended changing to a defined contribution plan for new hires. Mr. Foster reported that Aetna would be the new health insurance carried effective October 1 and this change would result in a savings of $400,000 per year. Other insurance coverage was expected to increase approximately 10% and the cost would be spread across various departments. Water and Sewer The City Manager reported that water and sewer revenues had remained level in recent years in spite ~* of an increased customer base, which he attributed to conservation methods being used by customers and possibly some old, slow water meters. He said the recent rate adjustment approved by the City Commission would result in just over $200,000 additional revenue. Donna Kaluzniak presented a status report on the water and sewer master plan projects and 2004 budget status. A copy of Ms. Kaluzniak's handout is attached as Ezhibit C. The City Manager explained a graph illustrating Water and Sewer combined revenues and explained that the condition of the systems had improved in recent years. Half-cent Sales Taz Fund The City Manager indicated that projects identified as strategic issues in the City Commission's strategic planning sessions were included in the budget. Rick Carper distributed a summary of projects that were already budgeted and optional projects that could be undertaken if funds were available, a copy of which is attached as Ezhibit D. The projects were discussed at length and the City Manager suggested that Commissioners consider these projects carefully and be ready to prioritize them at the next budget workshop. The Mayor suggested that the underbrush and vines be cleared out of Mandalay Park and the area generally cleaned up. A few parking spaces on the south end of the park could be defined with timbers and the bike path along Seminole Road and a shower near the beach could be added later. Commissioner Simmons said she would like to see a cost comparison for constructing bike paths of asphalt vs. concrete. 3 Page three Minutes -Budget Workshop August 11, 2004. Further discussion ensued and the City Manager reported that the City Hall budget needed to be increased by $100,000 to cover the cost of the architect and to provide contingency funds. He thought the City Hall parking lot should be leveled and resurfaced when the City hall project is complete, but that would probably be in the following fiscal year. The City Manager also thought the dispatch area in the police station was very cramped and needed to be remodeled. He said he would like to have design study done on the building so that the best use could be made of available funds. Discussion ensued regarding sidewalks/bike paths and it was thought that an overall plan should be developed for sidewalks throughout the city. There being no further discussion, the Mayor declared the meeting adjourned at 7:55 p.m. Maureen King, CMC City Clerk 4 Exhibit A Budget Workshop 8!11/04 Super Bowl Public Works Barricades Trash Pick-up Overtime Public Safety Overtime Lifeguard Salary Parks Recreation Overtime Trash bags - misc Public Utilities Salary r Payroll Operating Capital 10, 500 2, 000 2, 500 42, 000 5, 000 1, 800 2, 000 100 Total 10, 500 2,000 2, 500 42, 000 5, 000 1, 800 100 2, 000 53,300 12,600 0 65,900 Exhibit B Budget Workshop 8/11/04 City of Atlantic Beach Operating Budget Policies Purpose and Scope: This policy document will stand as the general guidelines for the development and adoption of the Annual Operating Budget for the City of Atlantic Beach. It will explain what is included in the budget, its relationship with other documents, and the process of how the document is created. These guidelines will also include a description of the basis for allocations, restrictions and projections of budgeted funds. Financial Budget Policy: General governmental revenue and expenditures accounted for in budgetary funds aze controlled by a budgetary accounting system in accordance with various legal requirements, which govern the city's operations. Budgets are monitored at varying levels of classification detail; however, expenditures cannot legally exceed total appropriations at the individual fund level. The City uses encumbrance accounting. All appropriations lapse at the end of the year, Unexpended items that are encumbered at the end of the year are re-appropriated in the subsequent year. "'"" Budgets are adopted by ordinance for all funds (general, special revenue, enterprise, debt service, capital projects and pension funds). The City manager is authorized to transfer budgeted amounts within departments within any fund; however, the City Commission must approve any revision that increases the total expenditures of any department or fund. All necessary supplemental appropriations are adopted by the City Commission and are included in the reported budgetary data in the City's annual financial audit. The budget document is to be prepared in accordance with accounting principals generally accepted in the United States. Scope of the Annual Budget: The scope of the Budget defines the comprehensiveness, budget form, basis of budgeting, and the budget calendaz. The Annual Operating Budget shall include the following components: Budget Transmittal Letter: A letter addressed to the City Commission and Citizens of Atlantic Beach discussing the proposed fmancial plan for the next fiscal year is included as an introduction to the budget. This letter will also comment on the previous year's activities and the current financial condition of the City. The transmittal letter will also ensure the City Commission that the budget was prepared within the parameters set in accordance with the policies and priorities set forth in the comprehensive plan, the Ten Year Financial Plan projections and the strategic goals established annually by the City Commission. II. Budget Calendar: A calendar outlining the major components of the timeline leading to the adoption of the budget indicating the primary responsible parties for each. III. Organizational Charts: Organizational charts are to be provided showing the various programs and management structure. The charts are to reflect authorized positions only and management reporting levels. IV. Revenues: The budget document will reflect two years of actual history, an estimate for the current year and the proposed then final approved budget for the next fiscal year. V. Expenditures: The budget document will include two years of actual history, an estimate for the current year and the proposed, then final approved budget for the next fiscal year. The budgeted expenditures will be segregated both by program area and by fund type. VI. Cash Balances: The budget document will provide for a projection of beginning and ending cash balances for each year presented and includes a schedule of cash balances by fund designating the restrictions on those funds. VII. Other Supporting Information:The budget document will also include requested "" schedules of interest. Typically these include a schedule of interfund transfers, certification of taxable value, charts and graphs of various revenue and expenditure summaries and charts describing the components of the millage rates that apply to the City of Atlantic Beach taxpayers. VIII. Long Term Financial Plan: Also included in the budget document is a long term projection of revenues expenses and cash balances for ten years. This mainly uses current trends for operating expenses and known major capital items ususlly of $20,000 or more. These schedules are a valuable tool in setting capital priorities in evaluating funding sources. Each of the major funds is represented by a long term projection The Adoption Process: Strategic Planning In the City of Atlantic Beach, the budget process truly begins with the Strategic Planning Workshops held early in the year. A professional typically facilitates these workshops and the participants include the City Manager, Department Heads and City Commission. They are public meetings and the press generally attends. All issues of importance are discussed and prioritized in an effort to give direction to the City Manager as to what the upcoming budget issues are that should be addressed. Staff, the City Manager and the Commission all contributes to the issues discussed in a very open forum. Departmental Input After the Strategic Planning Workshops conclude, the department heads are tasked with submitting a proposed budget to the City Manager that includes addressing the priority items of the workshops while also budgeting for the delivery of the level of service that that department is expected to provide to the community. The individual departments are required to submit a budget for the operating costs and the capital projects for their programs. This input is submitted electronically to the Finance Department and City Manager for review. This part of the initial proposal should be completed by early May. The Finance Department prepares the budgets for all payroll costs, transfers, debt service, insurance, cost allocations, governmental capital projects and other miscellaneous programs. The Finance Department also prepares the revenue budgets and projections of cash. The Finance Department assists all other departments with the development of their proposals with cost analysis and technical support. City Manager Review and Meetings Upon the submittal of the departmental requests, the City Manager reviews all budget inputs and schedules review sessions with the respective department heads individually. Budgets are reviewed line by line with the Finance Director and additional input is sought and revisions made. The City Manager reviews program objectives and ensures that goals and objectives are properly funded in the proposal. These objectives must be in sync with the direction given in the strategic planning workshops. Development of the Proposed Document Once all inputs are submitted and reviewed with the Department heads, the Finance Director compiles the requests and matches the expenditure requests with the projected revenues. The result of this analysis reveals either a surplus or a deficit resulting in the need to have additional meetings to further refine the proposals into a balanced package. Once all of the funds and programs are balanced, the document can be assembled in a proposed format. Budget Workshops After the Proposed Budget Document is prepared, the City Manager conducts a series of budget workshops outlining the issues and funding for the upcoming year. This is an opportunity for the Commission to confirm that the strategic issues identified have been provided for and that the City Manager has planned for the delivery of the desired level of service. The Commission and the public will have input in these sessions and prioritization of any remaining issues is addressed. Decisions are made regarding the funding of discretionary items and from this, the City Manager and Finance Director prepare a listing of items either cut or added during the workshops along with the respective funding changes as a summary to be presented with the budget at final adoption. The City Manager also amends his budget transmittal message to reflect any significant changes from the original proposal. Budget Adoption. The City's budget is adopted by Ordinance after two public hearings to be effective each October 1 and ending September 30, according to our charter. During these same meetings, the City Commission adopts the tax millage rate by resolution. This requires two public hearings giving the public ample opportunity to address issues of concern. These meetings are generally held in conjunction with our regularly scheduled Commission meetings when possible, however, if that conflicts with either the School Board or City of Jacksonville's public hearings, we must choose another night and call a special meeting. The Final Budget Once adopted, the budget appropriations aze input into the City's accounting software program and become the spending limit for all departments. The final version of the budget is prepazed reflecting all of the changes since the proposed version was submitted and distributed to all interested parties. The final budget is also scanned into electronic format and posted onto the City's WEB site. Encumbrances Rolled Forward: Within two months of the end of each fiscal yeaz, the Finance Department performs an analysis of expenditures that were outstanding and not invoiced or paid by the end of the yeaz. Those items that were outstanding at yeaz-end and aze valid encumbrances will be rolled into the next year with the corresponding budget being added to the final approved budget. Revenue Budget Projection The revenues to be programmed into the budget for the City of Atlantic Beach include a good diversification ofresources that are relatively stable. When preparing estimates, the City budgets revenues conservatively using an objective and reasonable approach. The objective of this policy is to predict revenues as accurately as possible while erring on the side of caution. All revenues will be programmed into their respective designated funds with legal or otherwise designated restrictions. Some guidelines used for major sources aze as follows: Ad Valorem Taxes: Budgets are proposed using the current millage rate unless otherwise directed by the City Commission. They are budgeted using the Property Appraisers valuation with a collection rate of 96%. The tax basis is delivered to the City in late June each year. Franchise Fees and other Taxes: These revenues are budgeted based on current trends and changes to the tax rates if known at the time of the budget. State Shared Revenues: All budgets for state shazed revenues aze obtained from the state and are available on-line in late June or early July. Charges for Services and Fines and Forfeitures: These sources aze generally budgeted using current trends. The estimate would vazy from the trend if there were fee changes or other known reasons for a change in those trends. User fees aze cost basis driven. The City has a sepazate policy that addresses the need to evaluate fees periodically to ensure that they recover our cost. The exceptions to this policy would be items that the community wants, but that the cost to provide would not equate to a reasonable user charge. Also, the City may set a fee that is low in order to promote the usage or a fee to discourage usage. As an example, the City has now adopted a water rate that encourages conservation that is not cost based. Intergovernmental Revenues: Intergovernmental revenues are funds received from other governmental units by contract. These funds are budgeted according to the contract terms. Inter-local agreements account for a large portion of these types of contracts. Miscellaneous Revenues: The most significant revenue in this category is interest on investments. The City is very conservative in budgeting interest earnings due to changing cash balances and changing rates of return. The primary investment is the State Board Administration pool that is both secure and liquid. The City has a separate investment policy that adheres to state laws. The policy objectives aze to first protect principal, then liquidity and finally get the best return available. The SBA is the investment choice for most small cities. Other revenues include items that aze unusual in nature and are infrequent. There aze a wide variety of these items, however the City typically will budget a minimal amount for this category. Expense Budget Projections The expenses for the City of Atlantic Beach will be presented by program azea and summarized by department. The Expenditures will also be summarized by fund type and by expense category. The expense categories used aze personnel services, operating expenses, capital outlay, debt service and transfers. When prepazing an expense budget for the City of Atlantic Beach, the following guidelines are used: The City will annually propose a budget that will provide for a level of expenditures sufficient to ensure the ongoing current level of service. The expenditures will be budgeted by program using the state uniform accounting criteria in order to ensure consistency within the City and with other governmental organizations. The City will propose a balanced budget. Balanced means that the sum of the cash available plus budgeted revenues will be equal to or exceed expenditures and ending cash balances. The projected ending cash balances will include all restricted and unrestricted amounts. Payroll Expenses: The proposed budget will be prepared funding all authorized positions. The City Manager will program in an amount for salary increases based on preliminary discussions with the City Commission. All pay raises are budgeted to become effective October 1 of each year. "Cost of Living Adjustments" or other pay issues may be added as a result of workshop discussions, pay plan adjustments or union negotiations. As a general rule, the percentage of pay increases are applied to all full time employees when possible as an across the board increase. From time to time, the City Commission may authorize a pay study in an effort to ensure that Atlantic Beach salary and benefits remain competitive for the local area. This is important to attract good qualified employees as well as to retain the current employees. If adopted, the pay rates for individual positions will be adjusted according to the recommendations where appropriate. This is typically done every three to five years and is separate from the across the board wage adjustments to all employees salary. New positions are included in the budget proposal if directed by the commission or if the position is needed in order to maintain the current level of service. If a new position were proposed as an enhancement to the current level of service, it would be addressed separately, usually as a request in the workshop meetings. Benefit Expenses: The City will provide funding for all approved benefits as mandated. These include Social Security, Medicare, health benefits, life insurance and pension as well as worker compensation insurance. Unemployment Compensation is not budgeted for, but funded on an as needed basis. The pension benefit is funded with the dollar amount designated by the respective pension plan's actuaries for both police and general employees. All future changes to the pension plan benefits will be evaluated for the long-term impact on the City before that change is implemented. The remaining amount to be funded comes from investment earnings, employee contributions and insurance tax premiums. Operating Services: This category of expenses includes everything from professional services to training. Many of these expenses the mangers have little control over such as insurance, fuel or electricity. Each line item is discussed every year in an attempt to find better ways to perform the services. Outsourcing verses hiring our own crews is often discussed. Our purchasing policies relate directly to the budget management process in that they require competitive bidding for large items and quotes on smaller priced items. These procedures are put in place to ensure that the City gets the best value for the money. By bidding out on a regular basis and checking market prices, the City ensures that costs are consistently kept low and therefore trending for budgeting purposes is more accurate. An important part of any operating budget is maintenance. It is the City's intent to maintain capital assets and infrastructure at a sufficient level to protect the city's investment, to minimize future replacement and maintenance costs and to continue the current level of service. Cost allocations or internal service charges are operating expenses that are incurred by one department of the City and charged out to others. Currently, the only allocated internal charges are paid by the enterprise funds. These include a prorated share of the General Fund divisional budgets of (City Manager, Finance, Human Resources, Public Works Administration, Information Technology and Fleet Maintenance) Cost allocations are also made across divisions for Insurance. These costs are allocated based on value of assets, number of vehicles, employees etc, depending on the policy. Insurance is regularly competitively bid out to control costs. Capital Outlay: Capital items include land, infrastructure improvements, buildings, equipment and vehicles. Capital items include items costing over $1,000 that result in new additions to our assets. Funding for capital items is prioritized by the City Manager and proposed to the commission for those items necessary to deliver the current level of service and based on available funding. Those items that are for service enhancements will be brought before the commission for prioritization and discussed in term of remaining available funds. Funding for capital projects can come from excess operating income, excess fund balance reserves, grants, debt or a specific source for each project. No project shall be awarded without funding in place consisting of either accumulated reserves, current revenues or by funds secured by a contract. If a project is being funded partially with a pledge, the project should not be awarded until the City Commission has designated aback-up funding source. Capital items are budgeted on a pay as we go basis. The City has operated under a "no new debt" policy since the 1996 utility revenue bonds were issued. When budgeting for a construction project, the City will budget a sufficient contingency based on engineering estimates or staff estimates as part of the project budget. Capital items costing in excess of $20,000 are included in the Long-Term Financial Plan when known The Comprehensive Plan and three Utility Master-Plans drive the long term planning for the majority of the City's capital improvements. A separate master plan was created for water, sewer and storm water utilities each Debt Service Expenses: The budget for debt service is programmed by the Finance Department and is budgeted in accordance with the amortization schedules for each issue. All debt service is programmed on a level payment basis. The City will budget to meet bond covenant criteria such as coverage ratio requirements. In the event that actual results are insufficient to meet those criteria, the City will budget to rectify the deficiencies in the immediate subsequent year. The 1996 Utility Revenue Bond debt is allocated on a pro-rata basis according to how the funds were spent; being split between the Water, Sewer and Storm Water funds respectively. The Water Utility Fund and gas taxes fund the 1999 Suntrust revenue bonds. This debt was incurred for combined street and waterline improvement projects. Non-Operating Transfers: The Finance Department programs all transfers budgeted. These transfers are necessary for a variety of reasons as described below. All transfers into and out of various funds should balance. Transfers are made to subsidize operations of another program. As an example, currently, the General Fund and Gas Tax Fund transfer funds into the Storm Water Utility Fund to support its debt service, and operating expenditures of that program. The fees collected for that service are insufficient to cover expenses. Transfers are made to move funds from where they were collected into other program budgets for major capital projects. Transfers are made per the City Code for return on investment purposes such as the transfer from the Water and Sewer Utilities to the General Fund for the 25% rate differential for outside City customers. Transfers are made as matches for grants. Budgeted Cash Balance Reserves It is important to establish a fund balance policy for the purpose of ensuring stable service delivery, smooth changes in tax rates and other fees and to avoid revenue and expenditure unbalance. The budget document indicates for each major fund the restricted and unrestricted cash available at the end of each year. Restrictions on funds of the City of Atlantic Beach include the following items. Debt Service Reserve fund restrictions exist in those funds paying debt service. The reserve balance equates to the amount due on October 1 of each year for the Utility Revenue Bonds. Rate Stabilization Reserve is $200,000 set aside in both the Water and Sewer Utilities to ensure that the City can meet revenue requirements to meet bonded debt coverage ratios Renewal and Replacement Reserve is a balance set aside as a requirement of our 1996 Bond Covenants of $500,000 in the Water and Sewer utility fund. This amount, if spent, must be replenished as soon as practical and before funds are used to on other items. Reserve for Customer Deposits is an amount restricted equal to the amount on hand for utility customer deposits as of September 30, of the preceding year. Operating Reserves are set aside in the amount of 25% of the payroll and operating expenses of the budget for each major fund. The 25% operating reserve was designated by the City Commission as the target for all major funds to be balanced with. The annual proposed budget shall be presented with all major funds having at least this reserve in addition to all of the '' other required reserve above. Commission Designations are restrictions of fund balance for a specific purpose. The only designated funds the City has at this time is the $300,000 set aside when the City outsourced the Fire Department for the purchase of future fire fighting equipment should we ever decide to have a department again. Budget Monitoring and Control The purpose of a budgetary control system is to ensure that actual expenditures do not exceed expenditures set forth in the budget. The Finance Department distributes monthly budget to actual reports to the City Manager and all departments for review. These reports allow management to take corrective action if actual numbers vary significantly from budgeted expenditures. As managers determine that certain program expenditures are not occurring in accordance with their respective budgets, budget modifications are submitted to the Finance Department and City Manager for approval. The City Manager has the authority to move funds within a department within a fund. In no case may total expenditures of a particular fund exceed that which is appropriated by the City Commission without a Budget Ordinance. ''" Budget Policy Highlights The City Manager will propose to the City Commission a budget that is in accordance with the following guidelines. • The City Manager will hold strategic planning sessions at the beginning of each budget preparation cycle. • The proposed budget will include appropriations sufficient to deliver at least the current level of service for all programs. • Proposed changes to levels of service will be addressed as separate issues in the budget workshops for consideration. • The proposed budget will be presented using the current ad valorem tax rate. • The proposed budget will be balanced, meaning that available resources plus projected revenues will equal the budgeted expenses plus projected ending cash. • The projected ending cash balance will exceed all legal required restrictions plus meet or exceed the City Commission designated 25% operating reserve for all major funds. • The reserve balance is calculated as 25% of the sum of payroll expenses and operating expenses of the budget being proposed. Debt service has its own reserve requirement. • The proposed budget will include funding for all authorized positions. • The proposed budget will include the 3% across the board merit increase per City Commission adopted resolution. • The proposed budget document will include aten-year fmancial projection of the major operating funds. • The proposed budget will fully fund the pension benefit using the dollar amount designated by the respective pension plan's actuaries for both police and general employees. • All future changes to the pension plan benefits will be evaluated for the long-term impact on the City before that change is implemented. • Capital items will be included in the proposed budget if either previously designated by the City Commission or if identified in an adopted plan. Basic items necessary to deliver the service level proposed will also be included. Discretionary capital items will be included in workshop discussions for prioritization and funding. ~"^ Exhibit C Budget Workshop 8/11/04 Water Fund -Master Plan and FY04 Budget Status 1 Continued work on Water Master Plan Goals during FY04: 1 Continued replacement of undersized water mains -Park & Mealy Water Main Replacement complete 1 Completed SCADA installation at plants ~ Elevated tank construction still underway at Water Plant #2 1 Sewer Fund -Master Plan and FY04 Budget Status ~ Items from Sol ids Handling Study and Plant Improvements 1 Completed construction of new sludge tank at WWTP #2, and rehabilitation of 2 existing tanks. 1 Bids advertised for Headworks Improvements at WWTP #2 1 Security fencing added at WWTP #2 1Plant SCADA system completed Sewer Master Plan Items for FY04 AContinued with Sewer Master Plan recommendations at much reduced level: 1 Sewer Improvements in Area B recently awarded. Funding available will only complete a small portion of area. Lift Station SCADA -bids advertised. Will complete 12 of 29 lift stations. Additional funds requested for future years. 2 Important Factors Influencing Budget Expenditures and Requests ~ Regulatory Issues -Water: ~ Revisions to FAC 62-555 required submission of a Capacity Analysis Report Will have sufficient capacity required by DEP once the elevated tank construction is complete and the Atlantic Beach & Buccaneer systems are interconnected and operating as one system as recommended in Master Plan ~ Staff is conducting test run of interconnected systems ~ New rule required a Vulnerability Assessment be submitted to EPA wAssessment showed need for security improvements, being addressed as funds are available Budget Factors, cont'd ~ An Emergency Response Plan must be submitted to EPA by December 2004. Staff will prepare in-house, but engineering assistance may be required. ~ Implemented conservation rates required by SJRWMD Should result in increased revenues, but actual effect will take time to tell, as some residents may install private wells or conserve more than expected. Budget Factors -Wastewater Issues ~ Regulatory requirements becoming more stringent, adding to treatment costs L Eff Zuent copper mixing zone request under review by ~'DEP • Total Maximum Daily Load (TMDL) issue may require engineering/legal fees, or possibly major capital improvements • Other DEP rules are currently under revision, and staff is monitoring closely ~ EPA plans to require Vulnerability Assessments and Security Improvements to wastewater facilities Factors Affecting Water and Wastewater ~ Increased electrical costs - JEA estimates nearly 7% increase in electric rates -about ,$35, 000 for plants and lift stations. ~ Information on increase was obtained after budget submitted, so additional costs are not included in budget. J Increases in chemicals, fuel, laboratory testing, and other supplies and services are expected to impact budget 4 Capital Request FY05 -Water Master Plan Items ~ Master Plan recommendations- replacement of undersized water mains 1 Replace 3 "water main at Beach Ave. from 10th St. to 14th St. and on 10th St. from Ocean to Beach. - $200, 000 ~ Replace 4 "water main at Sailfish & Plaza - $50, 000 ~ Replace 2 "water main on Kestner (CDBG funded) - $40, 000 x FY05 Capital Budget Requests - Water Additional security fencing at Water Plants 1, 2 & 3 per Vulnerability Assessment - X40, 000 Additional security improvements at Water Plant 4 (requested in %2 cent sales tax budget) - $'27, 000 5 Capital Requests FY05- Sewer Master Plan ~ Master Plan Recommendations ~LiftStation SCADA - $50,000 • Sewer rehabilitation - Mayport Road Sewer Crossings (in conjunction with Mayport Road Work) - $1 S0, 000 Capital Request FY05 -Sewer ~ Sewer Plant Security Upgrades (requested in %a cent sales tax budget) - $67, 000 ,Maintenance Items: • Replace pond liner at WW7'P # 1- $45, 000 J Rehabilitate clarifier at WYVTP # 1- $100, 000 1 Replace old digester blowers at WWTP #2 - $60, 000 • Replacement of automatic samplers at both plants - $11,000 ~ Replacement of flow meters, lab equipment - $8,500 6 Water/Sewer Budget Summary ~`~ l Increased regulatory requirements, electrical and supply costs are impacting the operating budget, with the possibility of increasing the capital budget. ~ The water/sewer rate increase is an important part of meeting the SJRWMD requirements as well as funding operating and capital needs. However, actual impact may take time to assess. • Master Plan recommendations are being implemented at a greatly reduced level as funding availability is less than expected. New rates may allow for additional work. 7 Exhibit D Budget Workshop 8/11/04 / 1/2 Cent Sales Tax Fund for 2004-05 Project Amount Notes Estimated Funds Available $1,035,492 A. Strategic Plan Projects Included in Budget 1. Mayport Medians * Carry over funds $235,000 Engineering ongoing '' Additional funds per RS&H Study $304,100 Includes engineering 2. Plaza/ Post Office Project $100,000 Rebudget and inflation 3. Security Improvements $145,000 WWTPs, Public Works, Adele Grage 4. Welcome Sign/ Landscaping $37,600 Carry-over from FY 03-04; includes 1/2 from Neptune Beach Balance After Strategic Items $213,792 B. Optional Projects 1. New Sidewalks * Decorative crosswalks $30,000 Discussed at Commission meeting '' Main St. $95,000 Input from staff " W. 3rd; Main to Mayport $25,000 Requested by M. Hoffman * Selva Marina Sidewalk $45,000 Request of P. Parsons; Saturiba North '' Sailfish; connect /w Atlantic $14,000 Request of D. Waters * Royal Palms; conn. Atlantic $20,000 Request of D. Waters 2. City Hall/ PD 8~ Area * City Hall Addition $100,000 Budget increase to fund construction bid + contingency "City Hall Interior Renovations $35,000 Designed but not in base bid + $3,500 for AC for conf. Room * Parkin Lot renovation $52,000 Leveling, Resurfacin , stripin " Remodelin design for PD $30,000 " Dispatch Remodeling $38,000 3. Parking/ Sidewalk at Mandalay Park/ 10th St. $43,000 Per presentation to Commission 7/26/04 4. Seminole Rd. Pedpath $34,000 Addition to carry-over budget ($46,000) 5. Plaza Rd. Pedpaths $145,000 $70,000 for west of Mayport Rd., $75,000 for Plaza to Seminole w/ Bridge 6. 5-Points Beautification ~s$55,000 Presented at 7/26/04 Commission mtg. 7. Storm drain; Ocean/ 13th $127,000 Includes $12,000 for design, modeling, permitting 8. Walk Over Renovations $45,000 16th, 18th & 20th St.s 9. Public Art $70,000 Request of P. Parsons 8/10/2004