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Item 6A and 7A- Millage and Operating BudgetCITY OF ATLANTIC BEACH, FLORIDA CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM 6A & 1 A SEPTEMBER 26, 2016 AGENDA ITEM: Public Hearings on adopting Resolution 16-05 for the Millage Rate and adopting Ordinance #20-16-140 establishing the Operating Budget for fiscal year 2016/2017. SUBMITTED BY: Russell Caffey, Finance Director DATE: September 26, 2016 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 26 111 , 2016 in the Commission Chambers at 6:30pm. 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 two workshops to review and make adjustments with the City Commission's guidance. The Proposed Operating Budget is funded using the millage rate of 3.2285 mills. This is a reduction in the millage when compared to the current year's rate of 3.3285 (FY16). This is the 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 #20-16-140. RECOMMENDATION: 1.) Hold two public hearings as described in the attached outline to approve both the final Millage Rate of 3.2285 mills and the Operating Budget Ordinance #20- 16-140 with total expenditures of $31,690,466. ATTACHMENTS: Agenda for Public Hearings Resolution #16-05 Ordinance # 20-16-140 Budget Summary of all Funds Schedule A: Proposed Changes to Final Budget REVIEWEDBYCITYMANAGER: ~ /an;;;:/~ AGENDA ITEM 6A & 7A SEPTEMBER 26, 2016 ADOPTION OF THE FINAL MILLAGE AND OPERATING BUDGET FOR FISCAL YEAR 2016/2017 First item to be considered: Adoption of the Millage Rate by Resolution 16-05 State the following: The Tentative Millage Rate is 3.2285 The Roll-Back Rate is 3.1754 The Tentative Millage Rate is 1.67% more than the roll back rate. The purpose for adopting the millage rate of 3.2285 is to maintain a level of ad valorem tax revenue sufficient to support funding for the proposed level of services at anticipated and proposed cost and to continue to maintain the City's infrastructure. Motion to adopt a final Millage Rate for operating purposes of 3.2285 Open Public Hearing Close Public Hearing Discussion and Vote Second item to be considered: Ordinance #20-16-140 establishing the Operating Budget for fiscal year 2016/2017 of $31,690,466 Motion to adopt Ordinance #20-16-140 establishing the Operating Budget for fiscal year 2016/2017 Open a Public Hearing Close Public Hearing Discussion and Vote AGENDA ITEM 6A & 7A SEPTEMBER 26, 2016 RESOLUTION NO. 16-05 A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA LEVYING THE AD VALOREM PROPERTY TAX MILLAGE RATE FOR MUNICIPAL PURPOSES ON ALL TAXABLE PROPERTY WITHIN THE CITY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2016 AND ENDING SEPTEMBER 30, 2017; STATING THE PERCENTAGE BY WHICH THE MILLAGE TO BE LEVIED EXCEEDS THE ROLLED-BACK RATE; AND, PROVIDING AN EFFECTIVE DATE. WHEREAS, Florida law requires the City Commission of the City of Atlantic Beach, Florida, to pass a resolution levying the millage rate for ad valorem property taxes for municipal purposes on all taxable property within the city limits of the City of Atlantic Beach, Florida, for the fiscal year beginning October 1, 2016 and ending September 30, 2017; and WHEREAS, Florida law requires said resolution to state the millage rate to be levied, and also, to state the percentage by which the millage rate to be levied exceeds the rolled-back rate as computed pursuant to Florida law; and WHEREAS, the City Commission of the City of Atlantic Beach, Florida, has duly considered the budgetary requirements of the City; has adopted a tentative budget for the fiscal year beginning October 1, 2016 and ending September 30, 2017, based on a millage rate of3.2285 mills on the taxable property within the City; and has acted in accordance with the terms, provisions, and procedures contained in section 200.065, Florida Statutes; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Atlantic Beach, Florida, that 1. The ad valorem property tax millage rate for municipal purposes to be levied on the taxable property within the city limits of the City of Atlantic Beach, Florida, during the fiscal year beginning October 1, 2016 and ending September 30,2017 is hereby set at the rate of3.2285 mills. 2. The percentage by which this millage rate to be levied exceeds the rolled-back rate of 3.1754is 1.67%. 3. This resolution shall take effect immediately upon its passage and adoption by the City Commission of the City of Atlantic Beach, Florida. ADOPTED at a public hearing by the City Commission of the City of Atlantic Beach, Florida on the 26 111 day of September 2016. Approved as to form and correctness: Brenna M. Durden City Attorney ATTEST: Donna L. Bartle City Clerk Mitchell E. Reeves Mayor I Presiding Officer ORDINANCE NO. 20-16-140 AGENDA ITEM 6A & 7 A SEPTEMBER 26, 2016 ~~~ORDINANCE ADOPTING TilE FINAL BUDGET FOR THE CITY -oF ATLANTIC BEACH, FLORIDA FOR FISCAL YEAR BEGINNING OCTOBER 1, 2016 AND ENDING SEPTEMBER 30, 2017. WHEREAS, the City Commission of the City of Atlantic Beach, Florida, on September 12,2016, 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 I, 2016 and ending September 30, 2017 in the amount of $31,690,466. 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 2017 budget be adopted, and 2. This ordinance shall take effect immediately upon its adoption. Passed by the City Commission on first reading this 12th day of September 2016. Passed by the City Commission on second and fmal reading this __ day of September 2016. Mitchell E. Reeves Mayor I Presiding Officer Approved as to form and correctness: Brenna M. Durden City Attorney ATTEST: Donna L. Bartle City Clerk AGENDA ITEM 6A & 7 A SEPTEMBER 26, 2016 City of Atlantic Beach Combined Summary of Revenues and Expenditures Summary of all Funds Actual Actual Estimate Budget Increase 2013-2014 2014-2015 2015-2016 2016-2017 {Decrease} Cash Forward 39,179,331 40,795,935 43,152,248 42,178,506 {973,742} Revenues General Fund 11,204,899 11,270,909 11,627,343 12,276,885 649,542 Special Revenue Funds 1,551,889 1,546,872 2,210,872 1,614,739 (596,133) Debt Service Fund Capital Project Fund 364,822 82,675 1,588,408 326,100 (1,262,308) Enterprise Funds 12,182,098 11,710,693 11,796,874 12,507,780 710,906 Trust and Agency Funds 3,105,080 2,118,275 3,978,960 4,051,426 72,466 Total Revenues 28,408,788 26,729,424 31,202,457 30,776,930 (425,527) Other Financing Sources 89,590 218,662 Total Resources 67,677,710 67,744,020 74,354,705 72,955,436 {1,399,269) Expenditures General Fund 10,861,273 10,624,305 12,335,875 12,356,784 20,909 Special Revenue Funds 1,418,672 1,321,876 2,210,389 2,245,100 34,711 Debt Service Fund 73,113 Capital Project Fund 98,073 442,723 4,146,078 385,000 (3, 761 ,078) Enterprise Funds 12,446,983 9,487,855 11,716,131 14,744,173 3,028,042 Trust and Agency Funds 1 ,448,128 1,784,840 1,767,726 1,959,409 191,683 DIVISION TOTALS 26,346,241 23,661,600 32,176,199 31,690,466. {485,733} Other Financing Uses 535,535 930,173 Cash Reserves 40,795,935 43,152,248 42,178,506 41,264,970 {913,536} Total Expenses and Cash 67,677,710 67,744,020 74,354,705 72,955,436 {1 ,399,269} Resource Allocation Personnel Services 9,149,396 9,067,644 9,675,939 10,482,633 806,694 Operating Expenses 10,119,154 10,310,196 11,357,668 11,775,898 418,230 Capital Outlay 3,299,043 2,196,414 6,992,017 5,448,300 (1 ,543,717) Debt Service 2,151,646 739,136 1,964,401 2,008,190 43,789 Transfers 1,627,003 1,348,210 2,186,174 1,975,445 (210,729) Total 26,346,241 23,661,600 32,176,199 31,690,466 {485,733} Schedule A AGENDA ITEM 6A & 7A SEPTEMBER 26, 2016 Changes from Proposed Budget to Final Budget REVENUES: Originally Proposed Revenues: General Fund -Ad Valorem Tax Revenue Revenue reduction of 1/1 oth of a mil Revised Final Budgeted Revenues EXPENSES: Originally Proposed Expenses: General Fund Media Relations Specialist Wi-Fi-3 recreation centers Low Speed Vehicle Program Additional overtime for additional cleanup costs at City events Half Cent Discretionary Sales Tax Fund Lifeguard Stations Improvements Shade Structure at Sunset Pier City Event Sign-Mayport Corridor Convention Development Tax Fund Sea Turtle Program-Signage Local Option Gas Tax Fund Digital Lighting at Pedestrian Crossing Revised Budgeted Expenses: $30,920,215 (143,285) $30.776.930 $31,506,567 42,799 5,100 30,000 2,000 50,000 30,000 3,000 10,000 11,000 $31,690.466