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Item 7AAGENDA ITEM #7A SEPTEMBER 13, 2004 ~'" CITY OF ATLANTIC BEACH, FLORIDA CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Public Hearings on adopting a Tentative Millage Rate and adopting Ordinance #20-04-65 establishing the Operating Budget for fiscal year 2004/2005. SUBMITTED BY: Nelson Van Liere, Finance Director DATE: September 13, 2004 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 13`x, 2004 in the Commission Chambers at 7:15pm as was noticed to all property owners by the Duval County Property Appraiser's Office. The format is the same as last year 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 was funded using the millage rate of 3.0394 mills. This represents a 7.025% increase over the rolled back-rate of 2.8399 mills. 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 #20-04-65, on September 27`x, 2004. RECOMMENDATION: 1.) Hold two public hearings as described in the attached outline to approve both the Tentative Millage Rate of 3.0394 mills and the Operating Budget Ordinance #20-04-65 with total expenditures of $24,972,991 in that order by sepazate vote. !~"' 2.) Set the Time and Date of the Second Public Hearing on September 27, 2004 at 7:15 p.m. in the Commission Chambers of City Hall located at 800 Seminole Road, Atlantic Beach Florida. ATTACHMENTS: Agenda for Public Hearings Ordinance # 20-04-65 "'~ Schedule of Changes to Proposed Operating Budget Proposed Budget Summary of All Funds REVIEWED BY CITY MANAGER• AGENDA ITEM #7A SEPTEMBER 13, 2004 ADOPTION OF A TENTATIVE 1VIILLAGE AND OPERATING BUDGET FOR FISCAL YEAR 2004/2005 First item to be considered: Adoption of a Tentative Mllage Rate State the following: The Current Millage Rate is 3.0394 The Tentative Millage Rate is 3.0394 The Roll-Back Rate is 2.8399 The Tentative Millage Rate is 7.025% higher than the Roll-Back Rate The purpose for the increase in ad valorem tax revenue is to maintain adequate funding for the existing level of service. Motion to adopt a Tentative Millage Rate for operating purposes of 3.0394 Open Public Hearing Close Public Hearing and Vote Second item to be considered: The Ordinance #20-04-65 establishing the Operating Budget for fiscal year 2004/2005 of $24,972,991 Motion to adopt Ordinance #20-04-65 establishing the Operating Budget for fiscal year 2004/2005 Open a Public Hearing Close Public Hearing and Vote AGENDA ITEM #7A SEPTEMBER 13, 2004 ORDINANCE NO. 20-04-65 AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2004 AND .ENDING SEPTEMBER 30, 2005. ~„ WHEREAS, the City Commission of the City of Atlantic Beach, Florida, on September 13, 2003, 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, 2004 and ending September 30, 2005 in the amount of $24,972,991. NOW, THEREFORE, BE TT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that; 1. The fiscal Year 2004/2005 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 2004. Passed by the City Commission on second and final reading this day of September 2004, John S. Meserve Mayor /Presiding Officer Approved as to form and correctness: Alan C. Jensen, Esquire City Attorney ATTEST: Jim Hanson Interim City Clerk AGENDA ITEM #7A SEPTEMBER 13, 2004 Proposed Budget Revisions After the conclusion of three budget workshops, the original proposed budget has been modified to reflect the following items by fund: General Fund The General Fund revenues were increased by $80;493. This is a result of additional internal !"" service charges to the enterprise funds of $19,493 caused by the increased personnel costs of those budgets to be allocated. Also, the City is expecting that the increase in electric rates will result in higher franchise fees of $36,500 and public service taxes of $24,500 to the General ~"" Fund. The expenditures of the General Fund have been increased by $540,668. The cost of living '~" salary increase accounts for $131,238 of that increase and is the total for all departments in the General Fund. Other changes to the General Fund budgets are as follows: The Public Works budget will now include funds for new sidewalks of $80,000; Pedpath improvements at Seminole and Plaza of $75,000; and $65,000 for improvements to the five points intersection. The Parks and Recreation Department will rehabilitate dune walkovers with an additional $45,000 in the maintenance budget. The General Fund budget also now includes $5,000 to assist Jacksonville Beach with the Fourth of July fireworks display. The General Fund also will transfer $136,319 of its fund balance to the Stormwater Utility Fund for a drainage project and additional operating and personnel costs. The General Fund will also transfer a match of $3,111 to the Police Grant Fund for additional personnel costs. Convention Development Tax Fund The Convention Development Tax Fund will now include $10,000 for the purchase of public art. Half Cent Sales Tax Fund The Half Cent Sales Tax Fund will now include additional funds for the Seminole Road Pedpath project. The budget will include $75,896; which includes $41,896 of funds to be re-budgeted from the current year. ~• AGENDA ITEM #7A SEPTEMBER 13, 2004 The Half Cent Sales Tax Fund will also include the remaining balance of the City Hall Expansion project plus an additional $100,000 and another $35,000 for the interior lobby remodeling. The total being added is $409,040. This year the City will fund $30,000 for the design of the Public Safety building renovations also from the Half Cent Sales Tax Fund. Water Utility Fund The Water Utility Fund will be reduced by $25,932. This is the net result of increases for personnel costs of $11,573, internal service charges of $6,495 and higher electric cost estimates of $6,000 offset by the elimination of a $50,000 water main project. ,The elimination of the water main project is to free up funds to do the Sewer Utility Headworks project. Sewer Utility Fund The Sewer Utility Fund will have a $352,654 increase resulting from increased personnel costs of $19,987, internal service charges of $7,667, electricity of $26,000 and the addition of funds needed for the Headworks project of $330,000. $187,868 of that total will come from funds not used in the current year. Another change made to afford the Headworks project is the $100,000 reduction from the elimination of the clarifier project from the budget. Sanitation Fund The Sanitation budget is increased by $2,535 for increased internal service charges of $2,422 and increased personnel costs of $113. Stormwater Utility Fund The Stormwater Utility budget has increased revenues of $136,319 from a transfer from the General Fund necessary to cover the increased internal service charges of $2, 910; the increased personnel costs of $6,409 and the addition of the storm drainage project on 13a' street and Ocean with an estimated cost of $127,000. City of Atlantic Beach Proposed Budget Changes General Fund Revenues: Intema! Service Changes Franchise Fees -Electric Public Service Taxes -Electric Total Revenues Expenses: All Departments Salary and Benefits Public Works Expenses Streets Division New Sidewalks Pedpath Seminole $ Plaza Five Points Beautification Parks and Recreation Expenses Operating Expenses Walkover Maintenance General Government Expenses Operating Expenses Fireworks at Jax Beach Non -Departmental Transfers Transfer to Stormwater Utility Transfer to Police Grant Fund Total Expenses Police Grant Fund Revenues: Transfers - In from General Fund Expenses Salary and Benefits Convention Development Tax Fund Expenses Operating Expenses Public Art Half Cent Sales Tax Fund Public Works Expenses Improvements Seminole Road Pedpath General Government Expenses Improvements 19,493 36, 500 24,500 $80,493 131,238 80,000 75,000 65,000 45,000 5,000 136,319 3,111 $540,668 $3,111 $3,111 $10,000 75,896 AGENDA ITEM #7A SEPTEMBER 13, 2004 City Hall Expansion 409,040 City Hall Interior Renovations 35,000 Remodeling Design for Police Department 30,000 Total Expenses $549,936 Water Utility Expenses Salary and Benefits 11,573 Administrative Intemal Service Charges 6,495 Production Utilities/Electric 6,000 Distribution Improvements -50,000 Total Expenses -$25,932 Sewer Utility Expenses Salary and Benefits 19,987 Administrative Intemal Service Charges 7,667 Treatment Professional Services -Engineering for TMDL 69,000 Util'rties/Electric 22,000 Improvements - Headworks 330,000 Improvements -clarifier -100,000 Collection Utilities/Eleclric 4,000 Total Expenses $352,654 Sanitation Expenses Salary and Benefits 113 Operating Intemal Service Changes 2,422 Total Expenses $2,535 ~' Stormwater Utility Revenues Transfer from General Fund $136,319 Expenses Salary and Benefds 6,409 ~' Operating Intemal Service Charges 2,910 Improvements ~* Storm Drainaige improvements at Ocean/13th Street 127,000 Total Expenses $136,319 AGENDA ITEM #7A SEPTEMBER 13, 2004 AGENDA ITEM #7A SEPTEMBER 13, 2004 City of Atlantic Beach Combined Summary of Revenues and Expenditures Summary of all Funds Actual Actual Estimate Budget Increase 2001-2002 2002-2003 2003-2004 2004-2005 (Decrease) Cash Forward 30,392,038 27,543,441 24,187,312 21,749,614 (2,437,698) Revenues General Fund 7,409,520 8,965,241 8,941,333_ 9,166,252 224,919 Special Revenue Funds 1,446,109 1,573,426 1,768,082. 1,512,428 (255,654) Debt Service Fund 222,013 497,339 72,086 73,035 949 Capital Project Fund 754,734 117,765 1,180 0 (1,180) Enterprise Funds 8,912,983 8,649,805 9,230,976 10,385,345 1,154,369 Internal Service Funds 2,081,960 0 0 0 0 Trust and Agency Funds 114,388 1,571,999 1,154,105 1,299,304 145,199 Total Reveunes 20,941,707 21,375,575 21,167,762 22,436,364 1,268,602 Other Financing Sources 756,768 1,197,852 9,297 0 (9,297) ~~ Total Resources 52,090,513 50,116,868 45,364,371 44,185,978 {1,178,393) Expenditures General Fund 7,216,427 8,665,956 9,492,228 10,924,636 1,432,408 Special Revenue Funds 1,927,D85 1,976,520 2,029,747 2,250,984 221,237 Debt Service Fund 220,330 546,178 71,086 72,435 1,349 Capital Project Fund 1,170,062 157,513 10,477 0 (10,477) Enterprise Funds 11,305,244 13,678,854 10,684,668 11,005,439 320,771 Intemal Service Funds 2,067,935 0 0 0 0 Trust and Agency Funds 585,990 593,889 634,609 719,497 84,888 DIVISION TOTALS 24,493,074 25,618,910 22,922,815 24,972,991 2,050,176 Other Financing Uses 53,999 310,646 691,942 0 (691,942) Cash Reserves 27,543,441 24,187,312 21,749,614 19,212,987 (2,536,627) Total Expenses and Cash 52,090,514 50,116,868 45,364,371 44,185,978 {1,178,393) ii Resource Allocation Personal Services 6,878,039 7,270,136 7,692,621 8,052,983 360,362 Operating Expenses 7,476,964 7,531,503 7,562,879 7,665,882 103,003 Capital Outlay 5,561,977 7,023,631 3,869,095 4,479,354 610,259 Debt Service 1, 928,196 2,249, 756 1, 751, 512 1, 756,403 4, 891 Transfers 2,647,898 1,543,884 2,046,708 3,018,369 971,661 Total 24,493,074 25,618,910 22,922,815 24,972,991 2,050,176