Agenda Item 7A revisedCITY OF ATLANTIC BEACH, FLORIDA
CITY COMNIIS3ION MELTING
STAFF REPORT
AGENDA Ti'EM: Public Hearings ova adopting a Tentative Millage Rate sad adopting
Ordia~ce #20-t~-91 establishing the C Budget for fiac~l year
?.008J2009.
SUBMITTED BY: Nelson Van I,iere, Finance Director
DATE: Saber 8, 2008
BACKGROUND: In order to adopt a millage rate and operating budget, the City
Commission. must adh~+e to a strict process per state law. Please find attached an ourtline: for
the public hearings to be hedcl on Sep~rnber 8a', Zt~08 in the Commission t~nbers at 6.-OOpm
as was noticed to all prop~rt~- owners by the Duval County Property Appraisex's (Vice. The
format is the same as in previous years and is to be read into the reo~rd as p~sented in order to
assure compliance with the TRIM laws (s,200.Oti5, F.S.).
Prim to these bearing, the City Manager pr~:sentexi a Proposed C-p~ating Budget and held four
v~ror~o~ps to ~r and make adjustm~ with the City Commission's guidance. The
Proposed Opera Budget ~ funded usamg the mili~e rate of2.9974 mills. This is 4.29
~ lower time the rolled back-rate.
There wi71 be a second gnblie fan the final adoption of the millage by resolution and a
second pudic hearing for the final adoption of the Operating Budget, Ordinance #20-08 91, on
Septeaaibe~r 22°x, 2008.
RECOMMENDATION:
l .) Hold two public hearings as desc~'bed in the attached outline ~ approve both
the Tereta~ive Millage Rate of 2.9974 mils and the Opel Budgc;t (h~dinaace
#20-08 91 with total expenditures of S29,Q25,143 in that order by separate vote.
2.) Set the Torre and Date of the Second Public Hearing at Seember 22, 2008 at
b:Ot)pm. In the Commissicxt of City Hall
ATTACHP4~NI'S: Agenda far Public Hearings
Ordinance # 2A-08-91
Budget Y of all Funds
List of Amps to Ihaft Budget
REVIE~1VED BY CITY MANAGER:
ADOPTION QF A TENTATIVE MQ.LAGE AND OPERATING BUDGET FOR
FISCAL YEAR 211~/ZOA9
First iteaa t• ~ ts~ideru'd•
Adoption of a Tentarive h Rabe
State the following:
The Millage Rate is 2.9974
The Tentative I1-tillage Rate is 2.9974
`The Roll-Back Rate is 3.1317
The Tentative Millage Rate is 4.29 percent lower than the Roll-Back Rate
The propose for adopting the miU~e rate of 2.9974 is to maintain a level of ad
valorem tax reweave suit ~ maintain adequate funding for the exiling
lever of s at anticipated in~ed cost and. to ccse to maintain the
City's infira~stnx~ure.
Motion to adopt a Tentative Millage Rate for operating purposes of 2.9974
Open Public Hearing
close Pub aad vote
Setoff to be cauuusidend:
Cirdinance #24-0&91 establishing the Operating Budget for fis~~l year 2008f2009 of
529,025,143
Motes tti adapt finance #~-08-91 e~B die operating Budget for fiscal year
2008J2009
Open a Public Heating
Close Public Hearing sad Vote
ORDINANCE N0.20-08-91
AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE
CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR
BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30,
2009.
WHEREAS, the City Commission of the City of Atlantic Beach, Florida, on September 8,
2008, held a public hearing as required by Florida Statute 200.065; and
WHEREAS, the City Commission of the City of Atlantic Beach, Florida, set forth the
appropriations and revenue estimate for the budget for Fiscal Year beginning October 1, 2008
and ending September 30, 2009 in the amount of $29,025,143.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF
OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that;
1. The fiscal Yeaz 2008/2009 budget be adopted, and
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this day of September 2008.
Passed by the City Commission on second and final reading this day of September
2008.
John S. Meserve
Mayor /Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna L. Bartle
City Clerk
City of Atlantic Beach
Combined Summary of Revenues and Expenditures
Summary of all Funds
Actual Actual Estimate Budget Increase
2005-2006 2006-2007 2007-2008 2008-2009 (Decrease)
Cash Forward 25,274,211 26,959,398 29,683,208 28,820,063 (863,145)
Revenues
General Fund 10,485,321 10,665,729 10,874,148 10,499,874 (374,274)
Special Revenue Funds 1,754,850 1,709,853 1,620,081 1,468,654 (151,427)
Debt Service Fund 72,669 73,759 69,566 69,500 (66)
Capital Project Fund 0 0 333,000 335,000 2,000
Enterprise Funds 8,799,935 9,485,778 11,744,393 13,061,075 1,316,682
Trust and Agency Funds 2,117,320 2,980,988 1,509,846
.~_ 2,132,708 622,862
Total Revenues 23,230,095 24,918,085 28,151,034 27,566,811 1,415,777
Other Financing Sources 91,111 9521878 0 0 0
Total Resources 48 52,8 55 56,386,874 552,632
Expenditures
General Fund 9,594,009 10,692,435 10,768,585 12,005,029 1,238,444
Special Revenue Funds 1,675,362 1,329,069 2,425,816 1,514,562 (911,254)
Debt Service Fund 71,505 72,482 70,986 71,355 389
Capital Project Fund 0 0 0 660,000 660,000
Enterprise Funds 9,237,098 10,141,428 12,854,544 13,837,808 983,264
Trust and Agency Funds 782,478 881,520 896,268 936,388 40,120
DIVISION TOTALS 21,360,453 23,116,934 27,014,179 29,025,143 2,010,964
Other Financing Uses 275,568 , 28,018 0 0 0
Cstsh Reserves 26,959,398 29,883,208 28,820,063 ?7,381,731 (1,458,332)
Total Expenses and Caah 48 52,8 55 58,386,874 552,632
Resource Allocation
Personal Services 8,371,588 9,086,164 9,312,929 9,960,463 647,534
Operating Expenses 8,391,538 8,406,218 9,169,237 9,103,977 (65,260)
Capital Outlay 2,042,419 2,605,940 4,364,315 5,665,196 1,300,881
Debt Service 1,765,831 1,675,553 1,683,805 1,681,207 (2,598)
Transfers 788,077 1,343,059 2,483,893 2,614,300 130,407
Total 21,360,453 23,116,934 _27,014,179
~- 29,025,143 2,010,964
Nehs from Badgct Revi~ Worikskops sad Am~dm~ts to Deft Budget
September 8, 2Nlt
A. Rala~as ~ Proposed Budget
1. Geaeral Ice; Budget reduced by 548,440. Sind the draft budget was prepared,
final quotes came in for the renewal of several types of city insurance
including automobile, pEOperty, lialu`lity, crime and envir~o®rmeoital. These final
were lower than estimates put in the budget by 548,400.
2. Ove~ctime/Holulav l'av; Budget reduced by 5'14,004. The city's policies far payment
of overtime and holidays has been ooroiderably mare L'be~al ~ requireanents of the
Fair Labor Standards Ad (FT.SA~ This savings will be a ~ redodion ~ changing
the payment for ova from "home paid" to "hours worked", changing tier police
slufls from 8 or 1:0 lmars to 8,14 or 12 bouts, depending on the position, changing
police pdnal avestiate fi+o:n 40 hours per week to 42 hours per week, and changing
pay far any city employee ~8 a hliday ftoni double time and a half fp double
time.
3. I-lealth Iz: Budgeet reduced by 5130,000. The draft budget included a 17`0
incxti~se in gt~p heealth in.~anoe oost.~ Loffiiiog 5148,000. This budget reduction
results ft~ c8 the a®oemt the city pays for the base HMO "Employee Only"
coverage fiom 100% to 9S°Y., changing. the amouart the city pays fm coverage of
spouse and family members from 50°!. of the difference to 45Y. of the diffenmce, and
the benefits pr+avided under the health ranee p~-
4. l'hage One IT Softwaure U; Budget roduoed by 599,000. This eliminates the
budgd for the upgrade to the "Navaline" 9oflw~+e fi+om the city's aurinfran~e software
vendor; HTE.
B. Additions to the Proposed Budget
1. Cost of Living Ad~~COLA~ Budgd expo increased by 5260,400.
As in previous years, ~ COLA was included in the daft budget. The City
Commission de~exminod that 4'16 was an apptnpriate number after Bering the
moat racxnt crest of Living index, what otl~rer e~loyecs in tore area and state have been
providing for COLA adju, and in consideration of the changes to the
ove~rtimeJlwliday pay policies and. heakh icx that will ei reduce the pay or
in~se the cyst of b ~- city employees.
2. Sound System for Atlantic Bach _ -- School; Expwditures increased by
514,000. The City Comnnission was asioed by the Friends of Atlantic Beach
Eiemetetary to pot 514,440 towards the caiot of a new sound system for the school
auditorium. In decidiHg ~ acid this to the budget, the a~rlced that an
agc+eenrent be worked out with the school won about which groups could
use this new sotmd system (and the school's m~ditenium).
3. Mayport Middle Schools Ptoaram: Earpenditures incxeased by 514,130. Upon request
from the G~ltural Aria and Raxtational Advisory Committee, the budget was
incr+easaed to provide srgrport for new programs at Mayport 1NTddle School. The
wau~ted to specifically note >h~ it was the city's intesrt that this be a one
time e~cpenditure and nat to turn into a rer~rrrirrg budget iteam.
4. Pant timpe Police Records Cleric Expm~ditures incased by 512,000. This will. help to
eliminate dte backlog of data entry in the Police Records Division.
5. Pope Ihug_Dog; Expenditures increased by 513„200. This includes not. only the
purchase of the chug dag and equipmceR fes• the cair but also the cast fcn the first year
of food, a supper to the sa~ry of the officer who will be keeping the dog at their
house and. far otirer
G 1"r:os[ers bctw-e~t Fonds
1. Pope ear ~ Traflsfer of 516,800 fr~a~n Gil Fund to Police Training
Fund. Since the draft budget was pre~arod, the city received two chocks firm the
Cleric of Co+nts (Jffce fce reverures for pest due rtlated b traffic citations
and other uses. Orre of the cheers was for over S 100,000 and was deposited in fire
special training fund per rtquirtnre~s in state law. This the transfer of the
operat~g txpens~o for police ~B from the General Fund to the Police Training
Fund.
2. Howell Park Bridges: Transfer of 550,000 from the General Fund to the Better
Jacksonville Di.+~etianary Half Cenot Salts Tan Fund. This is a capital projoct to
n~lace some of the aging bridges in Howell Park and will r+eault in an increase in the
fund balance of the Gtneaal Fund and an ecnml decaease tQ tht Sales Tree Fnnci.
D. Rrvteee Chas
1. Millar; Rtdudion is revenues of 5184,500. The city's ciarent (FYO$) millage
rate is 2.9g"J4 mils. The draft budg~ct was based upon. as in~se millage rate of
3.1317 mils tQ offset the reduction in the tsar base resulting fr~aan the approval of
Anrot 1 which doubles the homed ~, placxs a ~ P 1~' Y~
~P on the in~eased value of non-msid~entiet property, allows ga~ple with hom~est~ead
eXempfiions to hevc "portability" when they asove and txtmpts tangible personal
property. The hr millage rote was proposed to eamble the city to receive same
amcnwt of taxes as tht previous year and thereby allow the ao~maat~ of pr+eserrt
service levels. Hovwevtr, with the receipt of aver 52tf0,000 from the Clcak of Courts
Off ee going to the General Fund, the city determined that it was best far
the community tD hold the tax. rate at the currEnt amount even though it would result
in a won of revenues to the city:
2. State Revenue Estimates: Reduction in revues to various finds of Sl 13,600. City
staff uses state estimates for various, revem~es received through the state government
such as the Communieatian Service Tax, C~ Tear and state nweaue sharing. Since
the draft budget was pce~d, state rcv+enue have been revised downwards
which will result in a decrease in revewes in the Cx~al Fund of $80,30A and an
adl decx~se in rem in the Better 3acksonville Half Curt Sales Tax Fund
of 533,300.
E. Other Names
1. ~ fry the Cleric of Courts Office of Duval Ccnmty- l the fiord
balance of the Coal Fuad by $201,000. Two checks were received from the Clerk
of Courts Office in payment for revenues earned over the lam three years for traffic
cit~ions and other offeffies tried ~ the Daval County Court System.. One of the
chedrs equsiing 5201,000 was deposited. is the Genaal Fund. A second (pnwiously
noted} check for over $104,000 urea deposited in the Police Training Fund.
2. A_-cquisition of the Buckm~ Property: No change to budget. The cdiy had previously
budgeted fiords fi~ bath the Half Cent Discaretonary Sales Tear Fund and the
C'oa~rti~ sad Development Bed Tax} Fusrci fast a local shave to match a grant to
purchase approximately 350 saes of nsarsh and uplands adjacent to the v~cacoastal
Waterway known as the Burn Pn>paty. The city was unable to come to terms
with the seller and fiords w~ ~ablig~ed. Her, additional negotiation have
receffily been underway that may result in the city's ability to purchase this property
for the ~P~ value of $185,000. The c»rrrnt balance in the Bed Tax Fund is in
excess of that amount. However, tiffs is nab included in the tD the draft
budget and will ne0d to be added a budget amt if the details of the
property p are worked out.
3. Rnent ; a discussion was hcld during the third budget workshop oa
August 2T about the ~ high cast of the qty's de$ned benefit. not
glans The camamissi~ n~ that a report be p~ during the next year
about the possibility and savings that ooukl result from. the change to a defined
oa-ntn'btditrn ~ system.