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