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Agenda Item 7AAGENDA ITEM: SUBMITTED BY: DATE: BACKGROUND: AGENDA ITEM # 7A SEPTEMBER 9, 2013 CITY OF ATLANTIC BEACH, FLORIDA CITY COMMISSION MEETING STAFF REPORT Public Hearings on adopting a Tentative Millage Rate and adopting Ordinance #20 -13 -125 establishing the Operating Budget for fiscal year 2013/2014. Nelson Van Liere, Finance Director August 15, 2013 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 9th, 2013 in the Commission Chambers at 6:30pm 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 public workshops to review and make adjustments with the City Commission's guidance. The Proposed Operating Budget is funded using the millage rate of 3.3285 mills. This is a 0.39% increase over the roll back rate. Attached is a schedule of changes made to the proposed budget to arrive at the final budget. These changes were discussed in the budget workshops. 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 -13 -125, on September 23th, 2013 at 6:30 in the City Commission Chambers. RECOMMENDATION: 1.) Hold two public hearings as described in the attached outline to approve both the Tentative Millage Rate of 3.3285 mills and the Operating Budget Ordinance #20 -13 -125 with total expenditures of $29,482,771. 2.) Set the Time and Date of the Second Public Hearing at September 23, 2013 at 6:30pm. In the Commission Chambers of City Hall ATTACHMENTS: Agenda for Public Hearings Ordinance # 20 -13 -125 Budget Summary of all Funds Schedule: Schedule A: Changes from Proposed Budget to Final Budget REVIEWED BY CITY MANAG AGENDA ITEM # 7A SEPTEMBER 9, 2013 ADOPTION OF A TENTATIVE MILLAGE AND OPERATING BUDGET FOR FISCAL YEAR 2013/2014 First item to be considered: Adoption of a Tentative Millage Rate State the following: The Millage Rate is 3.3285 The Tentative Millage Rate is 3.3285 The Roll —Back Rate is 3.3156 The Tentative Millage Rate is 0.39% more than the roll back rate. The purpose for adopting the millage rate of 3.3285 is to maintain a level of ad valorem tax revenue sufficient to maintain adequate funding for the existing level of services at anticipated and proposed cost and to continue to maintain the City's infrastructure. Motion to adopt a Tentative Millage Rate for operating purposes of 3.3285 Open Public Hearing Close Public Hearing and Vote Second item to be considered: Ordinance #20 -13 -125 establishing the Operating Budget for fiscal year 2013/2014 of 29,482,771 Motion to adopt Ordinance #20 -13 -125 establishing the Operating Budget for fiscal year 2013/2014 Open a Public Hearing Close Public Hearing and Vote AGENDA ITEM # 7A SEPTEMBER 9, 2013 ORDINANCE NO. 20-13-125 AN ORDINANCE ADOPTING THE FINAL BUDGET FOR THE CITY OF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014. WHEREAS, the City Commission of the City of Atlantic Beach, Florida, on September 9, 2013, 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, 2013 and ending September 30, 2014 in the amount of $29,482,771. 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 2013/20143 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 2013. Passed by the City Commission on second and final reading this day of September 2013. Louis M. Borno Mayor / Presiding Officer Approved as to form and correctness: Alan C. Jensen, Esquire City Attorney ATTEST: Donna L. Bartle City Clerk AGENDA ITEM # 7A SEPTEMBER 9, 2013 City of Atlantic Beach Combined Summary of Revenues and Expenditures Summary of all Funds Proposed Actual Actual Estimate Budget Increase 2010 -2011 2011 -2012 2012 -2013 2013 -2014 (Decrease) Cash Forward 30,599,832 32,307,612 37,492,961 39,632,528 2,139,567 Revenues General Fund 11,477,762 10,897,298 11,117,600 10,930,617 (186,983) Special Revenue Funds 1,653,595 1,806,722 1,524,530 1,368,339 (156,191) Debt Service Fund 69,719 73,548 67,345 0 (67,345) Capital Project Fund 947,525 602,658 15,000 495,000 480,000 Enterprise Funds 16,221,714 16,796,922 11,578,875 11,836,753 257,878 Trust and Agency Funds 1,371,433 4,552,027 3,450,338 3,520,661 70,323 Total Revenues 31,741,748 34,729,175 27,753,688 28,151,370 397,682 Other Financing Sources 1,106,319 591,427 0 0 0 Total Resources 63,447,899 67,628,214 65,246,649 67,783,898 2,537,249 Expenditures General Fund 10,193,315 10,430,632 11,001,270 11,502,894 501,624 Special Revenue Funds 1,829,084 2,047,749 1,213,848 1,693,895 480,047 Debt Service Fund 71,343 70,783 72,040 70,655 (1,385) Capital Project Fund 452,086 25,116 177 485,000 484,823 Enterprise Funds 16,288,520 15,967,357 11,638,538 14,125,893 2,487,355 Trust and Agency Funds 1,295,322 1,428,381 1,687,465 1,604,434 (83,031) DIVISION TOTALS 30,129,670 29,970,018 25,613,338 29,482,771 3,869,433 Other Financing Uses 1,010,617 165,235 783 0 (783) Cash Reserves 32,307,612 37,492,961 39,632,528 38,301,127 (1,331,401) Total Expenses and Cash 63,447,899 67,628,214 65,246,649 67,783,898 2,537,249 Resource Allocation Personnel Services 9,140,073 9,407,213 9,427,656 9,537,387 109,731 Operating Expenses 9,763,711 10,151,562 10,266,888 10,535,858 268,970 Capital Outlay 6,962,507 6,873,101 2,145,419 5,331,738 3,186,319 Debt Service 1,740,872 1,870,160 2,447,876 2,448,768 892 Transfers 2,522,507 1,667,982 1,325,499 1,629,020 303,521 Total 30,129,670 29,970,018 25,613,338 29,482,771 3,869,433 AGENDA ITEM # 7A SEPTEMBER 9, 2013 Schedule A Changes from Proposed Budget to Final Budget REVENUES: Originally Proposed Revenues: $27,562,153 General Fund Internal Service Charges 20,217 Donation from Private Sources — Mayport Road Fountain 2,500 Transfer from Forfeiture Fund to General Fund 7,500 Transfer from Gas Tax Fund 82,000 Capital Project Fund — Marsh Preserve Transfer from Convention Development Tax Fund 35,000 Public Utilities Re -use Water Project Grant Proceeds 442,000 Revised Final Budgeted Revenues $28,151,370 EXPENSES: Originally Proposed Expenses: General Fund Parks $27,769,495 Bull Park Gazebo 40,000 Rose Park Playground Equipment 40,000 Public Works - Streets Division Welcome Signs 11,000 Robert Street Ditch Improvements 50,000 East Coast Drive Streetscape 79,000 Fountain on Mayport Road 7,500 General Government Sound System Upgrades 15,500 Police Department Expansion of the Kennel 40,000 Police Academy 7,500 AGENDA ITEM # 7A SEPTEMBER 9, 2013 Detective Off -site Office 40,350 Various General Fund Departments Salary and Benefit increase per Study and 2% Merit 163,857 Gas Tax Fund — Public Works Street Resurfacing <82,000> Transfer to General Fund for Public Works Street Division 82,000 Half Cent Sales Tax Fund — Public Works Seminole Road Streetscape 250,000 Street Resurfacing 82,000 Public Utilities Fund Salary and Benefits 36,738 Internal Service Charges 12,742 Building Department Salary and Benefits 4,775 Internal Service Charges 640 Sanitation Fund Salary and Benefits 638 Internal Service Charges 3,259 Storm Water Utility Fund Salary and Benefits 4,604 Internal Service Charges 3,138 Forfeiture Fund Transfer to General Fund for Citizen Police Academy 7,500 Convention Development Tax Fund Transfer to Capital Project Fund for Marsh Path Project 35,000 Pension Funds Internal Service Funds 435 Carry Over Items added to FY 2014, and deducted from the FY2013 budget. Public Utilities Effluent Outfall Replacement — Public Utilities - Sewer Arc Flash Studies — Public Utilities — Sewer Public Works Storm Water Utility 300,000 60,000 AGENDA ITEM # 7A SEPTEMBER 9, 2013 East Coast Drive Drainage Improvements 317,686 C.D.B.G. - Streets Division Dutton Island Road Sidewalk 64,414 Capital Project Fund — Marsh Preserve Project Marsh Preserve Paths — Phase I — 35,000 Subtotal of Carry — Over Items: $777,100 Revised Budgeted Expenses: $29,482,771