Item 7BAGENDA ITEM # 7B
JANUARY 26, 2009
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Ordinance No.20-09-95
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: January 20, 2009
BACKGROUND: On January 12, 2009, the City Manager reported to the City Commission a list of
recommended budget amendments. 'This ordinance makes all of the necessary adjustments related to the
January 12, 2009 report. Since those items were reported, a few others have been added. They are:
• $28,590 was added for additional work related to the resurfacing of Dutton Island Road by the
City of Jacksonville. This amount should have been charged to last year's balance and was not
carried forward into this year. The expense is being added to the Local Option Gas Tax budget
for Public Works.
• $13,000 of additional funds to be added to the tree fund budget to fund the tree planting program
with all available funds.
The January 12, 2009 City Manager's staff report is attached for reference.
BUDGET: The net effect of this Budget Ordinance is a net reduction to the combined fund balance
RECOMMENDATION: Approve Budget Ordinance 20-09-95
ATTACHMENTS: The City Manager Staff Report requesting authorization to prepare a midyear
budget ordinance addressing various revenue shortages.
REVIEWED ~• ~. _--
AGENDA ITEM # 7B
JANUARY 26, 2009
ORDINANCE NO. 20-09-95
AN ORDINANCE AMENDING THE OPERATING BUDGET FOR THE
CITY OF ATLANTTC BEACH, FLORIDA FOR FISCAL YEAR
BEGINNING OCTOBER 1, 2808 AND ENDING SEPTEMBER 30, 2809.
WHEREAS, the City Charter of the City of Atlantic Beach requires that the City
Commission approve all budgetary increases and transfers at the fiord level, and
WHEREAS, the nature of budgetary systems and those day-today decisions affecting such
budgetary systems require adjustments form time-to-time, and
WHEREAS, the State of Florida has revised the estimates for state-shared revenues
downward significantly based on more current trends, and
WHEREAS, management has also revised the estimate for earnings on cash deposits for all
major funds based on current trends and a dismal economic forecast.
NOW, THEREFORE, BE IT ENACTED BY TINE CITY COMMISSION ON
BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that;
1. The Fiscal Year2088/2809 Budget be amended as follows:
GENERAL FUND
Revenues:
Intergovernmental Revenues -State-Shared
Municipal Revenue Sharing ($20,034)
Half Cent Sales Tax ($62,326)
Intergovernmental Revenues -Grants
Federal Disaster Relief $9,500
Charges for Services
Internal Service Charges -Fleet Maintenance $93,948
Interest
Allocated. Interest Earnings ($94,000)
Transfers
Transfer from the Water Fund ($26,100)
Transfer from the Sanitation Fund 8000
Total Revenues: ($107,012)
Ezpenses:
Non-Departmental
Transfer to the Storm Water Utility Fund $124,100
AGENDA ITEM # 7B
JANUARY 26, 2009
City Administration
Finance
Training ($2,062)
Planning and Zoning
Operating Supplies ($1,000)
Human Resources
Professional Services ($3,900)
Information Technology
Capital Outlay ($52,000)
Police
Administration Division
Communications ($7,000)
Operating Supplies ($1,890)
Police
Patrol Division
Operating Supplies ($4,810)
Public Works
Streets Division
Capital Outlay ($141,800)
Public Works
Fleet Maintenance Division
Capital Outlay {$1,650)
Parks
Maintenance Division
Capital Outlay 15000
Total Expenses: ($107,012)
Fund Balance: $0
TREE REPLACEMENT FUND
Expenses:
Parks
Maintenance Division
Contractual Services 13 000
Total Expenses: $13,000
Fand Balance: ($13,000)
CONVENTION DEVELOPMENT TAX FUND
Revenges:
Ordinartve No. 20-09-95 Page 2 of 5
AGENDA ITEM # 7B
JANUARY 26, 2009
Taxes
Convention Development Taxes 9000
Total Revenues: (59~)
Fund Balance: (59,000)
LOCAL OPTION GAS TAX FUND
Revenues:
Taxes
Local Option Fuei Taxes 34 000
Total Revenues: (534000)
Ezpenses:
Public Works
Streets Division
Contract Services 528,590
Transfers
Transfer to the Storm Water Utility Fund 34 000
Total Ezpenaes: (55,410)
Fund Balance: (S28,590)
DISCRETIONARY HALF CENT SALES TAX FUND
Revenues:
Taxes
Discretionary Sales Surtax -Better Jax Half Cent ($25,540)
Interest
Allocated Irrterest Earnings ~ 17000
Total Revenues: (542,500)
Ezpenses:
Non-Departmental
Transfer to the Storm Water Utility Fund 2 500
Total Ezpenses: ($42,500)
Fund Balance: $0
PUBLIC UTILITY FUND
Revenues:
Interest
Allocated interest Earnings 53 000
Ordinance No. 20-fl9-95 Page 3 of 5
AGENDA ITEM # 7B
JANUARY 26, 2009
Total Revenues: (553,000)
Expenses:
Non-Departmental
Transfer to the General Fund ($26,100)
water
Production
Special Pay ($2,600)
Training ($500)
Distribution
Training ($500)
Sewer
Treatment
Training ($800)
Capital Outlay 22 S00
Total Expenses: ($53,000)
Fund Balance: $0
SANITATION FUND
Revenues:
Interest
Allocated Interest Earnings 8000
Total Revenues: ($8,000)
Expenses:
Public Works
Sanitation
Transfer to the General Fund 8000
Total Ezpenses: ($8,000)
Fund Balance: $0
STORM WATER UTILITY FUND
Revenues:
brterest
Allocated Interest Earnings ($50,000)
Transfers
Transfer from the General Fund $124,100
Transfer from the Gas Tax Fund ($34,000)
Transfer from the Discretionary Half Cent Sales Tax Fund 2 500
Total Revenues: (52,400)
Ordinance No. ZO-09-95 Page 4 of 5
AGENDA ITEM # 7B
JANUARY 26, 2009
Expenses:
Non-Departmental
Capital Outlay
Total Ezpenses:
Fnnd Balance:
2. This ordinance shall take effect immediately upon its adoption.
Passed by the City Commission on first reading this day of January, 2009.
Stl
Passed by the City Commission on second and final reading this day of Febntary, 20(?9.
John S. Meserve
Mayor t Presiding officer
Approved as to form and correctness: ATTEST:
Alan C. Jensen, Esquire
City Attorney
Donna L. Bartle, CMC
City Clerk
2 400
~~~)
Ordinance No. 20-09-95 Page 5 of 5
AGENDA ITEM # 7B
JANUARY 26, 2009
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Recommended Budget Amendments
SUBMITTED BY: Jim Hanson, City Manager
DATE: January 5, 2009
BACKGROUND: The City has recently received amended revenue forecasts from the State
that are lower than those used to prepare the budget. Interest rates have
also decreased dramatically because of current economic conditions and
the amounts budgeted by the City for interest earnings this year are
significantly more than we can expect to receive. These two factors
together decrease expected revenues by $372,000. These are in addition
to the already decreased revenue estimates for many funds that are already
included in the current budget.
These same factors are affecting local governments across the country and
have resulted in many dramatic reductions in personnel and service cuts.
Fortunately, Atlantic Beach is in better fiscal condition than many other
local governments and there are alternatives to reduce the budget without
significant service level reductions to the public. This staff report is to
outline a recommended group of budget modifications that will offset the
expected reductions in state revenues and interest.
Most important is what is not included in this recommendation. No cuts
in personnel, benefits or maintenance projects are recommended. The
biggest single change is in the elimination of the budget for new sidewalk
construction. This is made possible by the Commission's decision not to
move forward with the Main Street sidewalk and by eliminating most of
the new sidewalk construction budget for FY 09. There are also several
capital projects both large and small that have been bid or otherwise priced
which have, come in under budget. We can also offset the revenue
reductions by a couple of increases in revenues which were not included in
the original budget. These will not require any changes in rates paid by the
public.
There are several recommended reductions in operational accounts in
many of the city's departments. These are not anticipated to be noticeable
by the public in the short term. For example, training funds in several
departments will be reduced. Training in the long term results in more
AGENDA ITEM # 7B
JANUARY 26, 2009
professional and efficient city employees but, in times of fiscal stress,
some of the city's training can be delayed or eliminated.
The result of these budget amendments, if approved by the City
Commission, will be a loss of flexibility to handle other things that come
up during the year and lower year end budget balances in many of our
funds. Flexibility is often used to move funds from one account that may
be over budgeted to another project that may need additional funds to
complete. Also, smaller projects often come up through the year that can
be accommodated when flexibility exists. Without this flexibility, many
of these projects must be rebudgeted in later years or not done at all.
However, unlike the drastic actions being taken by local and state
governments across the country in response to the current economic crisis,
these recommended actions will not cause undue hardship for staff or
service reductions for the citizens we serve.
BUDGET: The attached spreadsheet entitled "Recommended Budget Amendment
January 2, 2009" includes reductions in revenues totaling $268,500 and
equal reductions and expenditures.
RECOMMENDATION: Authorize staff to prepare a budget amending ordinance for first reading.
ATTACHMENTS: Recommended Budget Amendment January 2, 2009.