Item 7DAGENDA ITEM # 7D
SEPTEMBER 14, 2009
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Approval of Budget for FY 2010 Fiscal Year
SUBMITTED BY: Jim Hanson, Ci Mana
DATE: August 25, 2009
BACKGROUND: The proposed budget that was presented to you on July 14`" has been
amended in accordance with instructions from the Mayor and Commission
during the series of three budget workshops held in August. This spending
plan for the City of Atlantic Beach preserves the funding needed to
continue to deliver excellent services to our citizens. Recent economic
issues have made this yeaz's budget prepazation very difficult. The
following points highlight the major issues addressed in this budget.
1. Total Revenues and Expenditures; A Budget Summary page has
been prepared to simplify many of the complexities of municipal
budgeting. It shows that the total revenues anticipated next year are
$22,749,810 and expenses are $25,225,193 excluding transfers,
internal service charges and loan proceeds. A copy is attached for
your use.
2. Revenue Reductions; Like cities and states across our country,
Atlantic Beach is expected to receive considerably less revenue next
year from several sources including property, sales and gas taxes,
interest earnings and other State-shazed revenues.
3. Property Taxes; The tax rate will change from 2.9974 to 3.1553 mills
which is a 5% increase. This will result in receiving the same
revenues from property taxes as in the last year with a slight increase
from new construction. Individual property tax assessments may go
up or down depending on the valuation from the Property Appraiser,
but the total tax digest in Atlantic Beach is down by 5% from last
yeaz.
4. Other Revenues; Water and sewer chazges will increase
automatically from the 3-yeaz rate increase previously adopted to
pay for the cost of meeting new environmental standards for
discharge of wastewater into the St. Johns River. Sanitation and
stormwater fees will remain unchanged.
5. Pay and Benefits; There aze no raises for employees in this budget,
either cost-of-living or merit. Salaries for the Mayor and
commissioners are reduced by 10%. One part-time position has been
eliminated and lifeguard hours have been cut back. Other positions
are funded, some through special grants.
AGENDA ITEM t! 7D
SEPTEMBER 14, 2009
6. Wastewater Standazds; Construction is scheduled to begin on the
first phases of work needed to improve the quality of the River by
reducing the nitrogen discharges from the City's wastewater plants.
Most of the funding will come from loan proceeds financed over the
20 year useful life of the plant and equipment. State permits require
that the work be complete and operational in 2013.
7. Pension Plans; The required contributions to the employee pension
plans have increased significantly and are expected to remain
elevated for at least a few more years in order to overcome recent
valuation decreases related to the worldwide economic downturn.
RECOMMENDATION: Consider adoption of Resolution 09-121evying the ad valorem property
tax rate and of ordinance 20-09-99 adopting the final budget for fiscal yeaz
2009-2010.
AGENDA ITEM # 7D
SEPTEMBER 14, 2009
CITY OF ATLANTIC BEACH, FLORIDA
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Public Hearings on adopting a Tentative Millage Rate and adopting
Ordinance #20-09-99 establishing the Operating Budget for fiscal year
2009/2010.
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: September 3, 2009
BACKGROUND: In order to adopt a millage rate and operating budget, the City
Commission must adhere to a strict process per state law. Please find attached an outline for
the public hearings to be held on September 14`'', 2009 in the Commission Chambers at 6:OOpm
as was noticed to all property owners by the Duval County Property Appraiser's Office. The
format is the same as in previous years and is to be read into the record as presented in order to
assure compliance with the TRIM laws (s.200.065, F.S.).
Prior to these hearings, the City Manager presented a Proposed Operating Budget and held
three workshops to review and make adjustments with the City Commission's guidance. The
Proposed Operating Budget is funded using the millage rate of 3.1554 mills. This is the rolled-
back rate.
Subsequent to the final budget preparation workshop, two significant issues have risen that will
require changes to the original budget as proposed. They are as follows:
1.) The state has further reduced Atlantic Beach's portion of shared revenues. These
revenue estimates should be adjusted downward.
Revenue Ori 'nal Chan a Revised
'/a Cent Discretion Sales Tax $620,259 <9,925> $610,334
Local O tion Gas Tax $462,667 <7,403> $455,264
Half Cent Sales Tax $1,083,267 <17,333> $1,065,934
Munici al Revenue Sharin $381,410 <6,103> $375,307
Total $2,547,603 <40,764> $2,506,839
2.) The Department of Environmental Protection has requested that the City revise the
plans for the Water Well project budgeted in the current year. The plans are five
years old and some of the standards had changed. As a result, the Public Utilities
Department will not be able to award the construction of the well this year as
planned.
The result is that we must amend the current year estimate and add the balance of
the project funds to next year's budget. The amount of $745,725 should be added
to the Public Utilities Water Plant Division budget for 2010. This change will also
require the reduction of the transfer to the General Fund in the 2010 budget for that
AGENDA ITEM # 7D
SEPTEMBER 14, 2009
same amount. Since the amount of the reduction of the transfer and the amount of
the addition of the project cost off-set each other, the total expense budget being
adopted for 2010 will not change.
There will be a second public hearing for the final adoption of the millage by resolution and a
second public hearing for the final adoption of the Operating Budget, Ordinance #20-09-99, on
September 28t1i, 2009.
RECOMMENDATION:
1.) Hold two public hearings as described in the attached outline to approve both
the Tentative Millage Rate of 3.1554 mills and the Operating Budget Ordinance
#20-09-99 with total expenditures of $29,713,042 amended per attachment B in
that order by separate vote.
2.) Set the Time and Date of the Second Public Hearing at September 28, 2009 at
6:OOpm. In the Commission Chambers of City Hall
ATTACHMENTS: Agenda for Public Hearings
Ordinance # 20-09-99
Budget Summary of all Funds
Budget Summary -TRIM format
Schedule A: List of Amendments to Draft Budget
Schedule B: Changes to the Proposed Budget
REVIEWED BY CITY MANAGER:
AGENDA ITEM # 7D
SEPTEMBER 14, 2009
ADOPTION OF A TENTATIVE MILEAGE AND OPERATING BUDGET FOR
FISCAL YEAR 2009/2010
First item to be considered:
Adoption of a Tentative Millage Rate
State the following:
The Millage Rate is 2.9974
The Tentative Millage Rate is 3.1554
The Roll-Back Rate is 3.1554
The Tentative Millage Rate is the same as the Roll-Back Rate
The purpose for adopting the millage rate of 3.1554 is to maintain a level of ad
valorem tax revenue sufficient to maintain adequate funding for the existing
level of services at anticipated increased cost and to continue to maintain the
City's infrastructure.
Motion to adopt a Tentative Millage Rate for operating purposes of 3.1554
Open Public Hearing
Close Public Hearing and Vote
Second item to be considered:
Ordinance #20-09-99 establishing the Operating Budget for fiscal year 2009/2010 of
$29,713,042
Motion to adopt Ordinance #20-09-99 establishing the Operating Budget for fiscal year
2009/2010
Open a Public Hearing
Close Public Hearing and Vote
AGENDA ITEM # 7D
SEPTEMBER 14, 2009
ORDINANCE N0.20-09-99
AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE
CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR
BEGINNING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30,
2010.
WHEREAS, the City Commission of the City of Atlantic Beach, Florida, on September 14,
2009, 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, 2009
and ending September 30, 2010 in the amount of $29,713,042.
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 Year 2009/2010 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 2009.
Passed by the City Commission on second and final reading this day of September
2009.
John S. Meserve
Mayor /Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
ATTEST:
Donna L. Bartle
City Clerk
AGENDA ITEM # 7D
SEPTEMBER 14, 2009
City of Atlantic Beach
Combined Summary of Revenues and Expenditures
Summary of all Funds
Actual Actual Estimate Budget Increase
2008-2007 2007-2008 2008-2009 2009-2010 (Decrease)
Cash Forward
Revenues
General Fund
Special Revenue Funds
Debt Service Fund
Capital Project Fund
Enterprise Funds
Trust and Agency Funds
Total Revenues
26,959,398 29,683,208 28,149,952 24,085,029 (4,064,923)
10,665,729
1,709,853
73,759
0
9,485, 776
2,980,968
10,943,431
1,482,891
69, 723
332, 938
11,944,047
(756,997)
24,916,085 24,018,033
10,484, 752
1,407,858
68,600
332, 000
12,604,300
2,161,708
27,058,218
11,796,728
1,290,644
69,000
1, D02, DDD
16,547,948
2,360,115
33,086,435
1,311,976
(117,214)
400
67D, DOD
3,943,648
198,407
6,007,217
Other Financing Sources 952,675 788,018 567,576 0 (567,576)
Total Resources 52,828,158 54,487,259 55,778,746 57,151,464 1,374,718
Expenditures
General F~rnd ?0,&92,435 ?0,797,76? 13,4?2,397 ?0,608,269 (2,804,?28)
Special Revenue Funds 1,329,069 2,081,860 1,872,980 1,862,618 (10,362)
Debt Service Fund 72,482 70,965 71,355 71,560 205
Capital Project Fund 0 0 35,000 415,000 380,000
Enterprise Funds 10,141,428 11,915,668 15,046,965 15,722,729 675,764
Trust and Agency Funds 881,520 887,839 1,020,079 1,032,865 12,786
DIVISION TOTALS 23,116,934 25,754,093 31,458,776 29,713,042 (1,745,734)
Other Financing Uses 28,018 583,214 232,941 0 (232,941)
Cash Reserves 29,883,208 28,149,952 24,085,029 27,438,422 3,353,393
Total Expenses and Cash 52,828,158 54,487,259 55,776,746 57,151,464 1,374,718
Resource Allocation
Personal Services 9,086,164 9,606,108 10,180,906 10,274,527 93,621
Operating Expenses 8,406,218 9,074,993 9,255,951 8,520,305 (735,646)
Capital Outlay 2,605,940 2,906,185 6,559,237 6,084,807 (474,430)
Debt Service 1,675,553 1,682,914 1,680,607 1,755,495 74,888
Transfers 1,343,059 2,483,893 3,782,075 3,077,908 (704,167)
Total 23,116,934 25,754,093 31,458,778 29,713,042 (1,745,734)
AGENDA ITEM # 7D
SEPTEMBER 14, 2009
F-
O ~O~CpOtI.O rtAOS00p tt~~
~CONOO~OOND(~O~cOOMO ~ O
OrO OOr(O
~~~ tap}
V t~NO~t~rtnlAll')MC'7
a~0~CO00V tnaOpM~ONO {'7
~ OOr
O
~ N
~ dap
qW
~
~
O
O pp
NCOOU 000I~00C^p~00~(0to ~
pppp c~
A~
O
'
O~
eF
I~CACD
ICON :
e-
~f
OD 000V rf~OD tpchO
OMaON O~~~AO~f)~
~
1A
N Q
i
f~~
ti0
00
M e~
a-
O
(
~~
eF I
~
d
Nr000M r
r O ^ O~CO
n ~- ~NNtD
rNf~rO N O~ ~ r
~
N r r
~ r N
N M r L
EA N.
~ 6() (n r r r r N 1!j
N M r
fA 1~
N I~
N
fA
(/) Z tOD
t0
pp
O O O 0
O M O O r
r
1~
f`') N
M
N
In
O
O
IA
~
W p 1- fA
y p Z ~
~' Op ~i ui p
a0 O M S o
M ~
O' t
0
~ oNO C
D
t~ i Os
N ~
~
~
HLL
r
r
N V
P 0 O
r ~
r tF
r
a
lV
r r
~
~
~ W
q fn ti
t0 N 11~ p0 O
O ao O M ~
r pp ~
O ti N
t0 e} 1~ ~ to
~ ~ M
M ~
M 00 r
~ ~ r
0 ~
N
q 0' N
p a p
N
~-
r N ui N
O to a0
r
~
ao 00
h N
pp
t0 i
O
lp h V M
tf) W CO
r
r 0 0
0
1~ t
0
O
!Y Z
~
O N
N
V' CO
N
N ~ N f0 O
ti ch O
~~ M
N ~~pp
N
F~ 1L fH ~ ~ ~ ~ '- ~"' ~ r r O r
W W w
W
N ~ ~ ~ `p 0O
~ $ ~O}
K! (pp
to
b
QOf ~}
~/
W 1-Vp
~
t!i
ca
r
i ~
1. f
Up W~p
N }}-- i- p W LL
~
~ ~ ~ ~ !/!
Zp
g
a ~
~
~• J q X f"
W o
~ 0
o 0
S o
S ao
ONf
O o
O ao
M ao
V O
WQV
N
N
N p
S ~
!'~~
r
r O
f
:~
M
C ~ ~~ Z~-Wj
~ ~ ~
~ N t0
i
(
~ *9 ~ y
Uaa
WU
~
ct ~
p-. ~ a O
~
p
O C9
NO
~
{j QQ M MCOO ~ C~ ~ '~? ~ OOCO~ O ~ O ~ ~
Cf MNO N N 10 O OOM1~ O ~ ~ Of 4!
~1 = W Q ~ ~ (q
Zp
~ OD O tri O CO ~ cM
0 r N O
N 1~
N to O I~ M ~
1nNCD O ~- .-= t!
r
U
O q ~
7
= ~' CO~1'
~ fA M ~
r
.
m G0' aWL
1.
m V Z~ N~ h M N
W
z a s-
~
g
J
~
~
°$N t0 O N 0~ O O tl')
ON MNN~O r
.rte oo~ao
m ~ Of
P
M O r
O
v
~ 00
O
o I~ N M r lL) r
('7 O N N
" ~ Of
°
` O
~ O
M O
O
~
.,
q W
s p
2 +~
~
O>
f~ rn
O CA N C'7 M (V In
N oO ~
tf1 _
r Qj
tD ~ ao o v_
(M M f~ 00 00 r e
{h
11') ~.
h o
t0
(
J
~ T. q W Z
L
J
~f to N CO f~ N
r r fD ao O +q
OD M O
In ~t f~
M cb f~ M O O~ CD
~t 1~ to r 0 In +A
Ip tt? CD
1~ f~
M
o
m
~ ~~
} N ~jr r
vs Op rr ~ 69,E r N O
~ M Q
N
F
U Z e
R
~- ~
~o ~ ~ o pU
p
{L m eh = ~ f- Z
N !6 h y ~' _ .S Z Q
O ~ o.o c
c~ ~ a~ tWi
v7 v7
W ~ ~
~ am
X o!f
W ~ c
~ ~ ~ ~ ~ ~ ~ c ~ p W
W
= p ~
p o m
~ u~
'~ I" _
p o ~ V1
~ ~
m m H~
`~ W as
m N X E N a
iw ~
~ X1~ O ~~•- N UV ~ N °
03 N Z ~,
c ~n
c N CAS O~ ~ `p CD qW
W v ~f- m> Z "°. ~'"= o o~ p V > 0. ~ ~ c c a~i
c p U ~ d W
tr 1
m E..yC7~a~~d,t~•h~
U
~
~ Z
W ~ti
~ Z
W W a
i
E me Nw ~m Z +-~ ~ O~
p ~
_a ~
c
~ v o m y a~
~ ~ cu.~ a E
~ o c o` m ~- m
>
W c •- a
i
Z
~ N~
>v~
W W
p
W > a~ o •o ~ ~ c p
~
•
o
a? 3 R m o~~ m m W
aXX p •-
~ N v
~ ~ N
Q~
~' ~ ~~n~v,~NCV~ia~aoiw ~ y~o ~V F' ,
(.~~m'Cc U
Z•°a'- W ~ W
~
= ~ 'vi ~ y O > ~Of p~ C N V O O~
c
a a ~ <C d
~ Q Z
g ~ ~ U~ ~ O C C~ ~ O C
.
~•c~
:~
•
c J
~ ~ f0
_~ ~ J N
FZ
F
w c
i a
~~~cm~~C)
a~
~g
n~UV c
i
iww ~ E'
~ =a
iN
`~
~ ° ~
~m f.
w c
~
~
~Y
c
'
~
~
~i
m
~`
~ O ~ c C ~
i c
~i
i f
- a
.
C
nn
.m
-
-
an.¢ ~i 0
AGENDA ITEM # 7D
SEPTEMBER 14, 2009
Schedule A
Changes from Draft to Proposed Budget
Originally Proposed Revenues:
Increase for Justice Assistance Grant
Less Loan Proceeds for Public Safety Building
Transfers from Public Utilities to General Fund
Revised Budgeted Revenues
Originally Proposed Expenses:
Reduction to Workers' Comp Insurance
Reduction to General Liability Insurance
Reduction to City Commission Salary
Public Safety Building Construction
Transfer to General Fund from Public Utilities
Increase for Justice Assistance Grant Funds
Revised Budgeted Expenses:
Schedule B
Final Budget Changes from Proposed
$36,468,272
70,000
<2,700,000>
14,652
$33,627,070
<61,152>
<23,654>
<3,874>
<3,885,000>
14,652
45,000
2009 Estimate 2010 Budget
Revised Budgeted Revenues $27,804,943 $33,852,924
Transfer from Public Utilities to General Fund 0 <745,725>
Transfer from General Fund to Public Utilities <745,725> 0
%2 Cent Discretionary Sales Tax 0 <9,925>
Local Option Gas Tax 0 <7,403>
Half Cent Sales Tax -General Fund 0 <17,333>
Municipal Revenue Sharing -General Fund 0 <6.103>
Revised Revenue Estimate
Revised Budgeted Expenses: $32,950,226 $29,713,042
Transfer to General Fund from Public Utilities 0 <745,725>
Transfer to Public Utilities from General Fund <745,725> 0
Public Utilities -Water Plant Division Well Project <745,725> 745,725
Budget Expenses 531,458.776 $29.713.042