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Home My WebLink About09-29-2021 CC AgendaLR OF SEBAS"RAN - HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL COMMUNITY REDEVELOPMENT AGENCY BUDGET HEARING FINAL BUDGET HEARING FOR FY21122 AGENDA WEDNESDAY, SEPTEMBER 29, 2021 - 5:01 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA ALL AGENDA ITEMS MAYBE INSPECTED IN THE OFFICE OF THE CITY CLERK 1225 MAIN STREET, SEBASTIAN, FLORIDA OR ON THE CITY WEBSITE CALL TO ORDER 2. MOMENT OF SILENCE 3. PLEDGE OF ALLEGIANCE 4. ROLL CALL 5. Recess Citv Council Meetina and Convene as Communitv Redevelopment Agenc-v pgs 5-9 A. Conduct Public Hearing on CRA Budget for FY2019 — CRA Resolution No. R-22-01 (Transmittal, R-22-01, Exhibit A) A RESOLUTION OF THE CITY OF SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY (CRA) ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; MAKING FINDINGS; AUTHORIZING AMENDMENTS AND TRANSFERS; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING AN EFFECTIVE DATE. 6. Adiourn Communitv Redevelopment Aaencv Meetina and Reconvene as City Council 7. PUBLIC HEARING A. Final Hearina on Millaae for Calendar Year 2021 and FY 2021/2022 Budaet i. Attorney advises Council on Procedure for Millage/Budget Hearing and Reads Titles for Resolutions R-21-19, R-21-20, R-21-21, R-21-22 ii. City Manager Announces Proposed Millage Rate of 3.0043 Mills which is Equal to the Rolled -Back Rate pgs 10-25 iii. Budget Overview iv. Mayor Opens Hearing for Public Comment on Millage, Budget, Financial Policies and CIP V. Mayor Closes Public Hearing 1 of 50 vi. City Council Deliberation and Action: pgs 26-27 a) Adopt Resolution No. R-21-19 Millage Rate for Calendar Year 2021 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A MILLAGE RATE OF 3.0043 MILLS FOR THE CALENDAR YEAR 2021 AND ALLOCATING SAME TO THE FISCAL YEAR BEGINNING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. pgs 28-35 b) Adopt Resolution No. R-21-20 Budget for Fiscal Year 2021/2022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON THE INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING DEPARTMENT FUND AS PROVIDED FOR IN SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. pgs 36-47 c) Adopt Resolution No. R-21-21 Readopting the Financial Policies for Fiscal Year 2021-2022 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING FINANCIAL POLICIES GOVERNING VARIOUS AREAS OF BUDGET AND FINANCE AS PROVIDING FOR IN ATTACHMENT "A"; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. pgs 48-50 d) Adopt Resolution No. R-21-22 Approving the Six -Year Capital Improvement Program for the Fiscal Years 2022-2027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING A SIX -YEAR CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEARS ENDING 2022-2027; PROVIDING REPEAL OF RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. 8. ADJOURN (All meetings shall adjourn at 9:30 p.m. unless extended for up to one half hour by a majority vote of City Council) NO STENOGRAPHIC RECORD BY A CERTIFIED COURT REPORTER WILL BE MADE OF THE FOREGOING MEETING. ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COUNCIL, BOARD OR AGENCY WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING OR HEARING WILL NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (F. S.286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA) OF 1990, ANYONE WHO NEEDS A SPECIAL ACCOMMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 388-8226 — ADA @CITYOFSEBA S TIAN. ORG AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. 2of5(� ZOOM INFORMATION Please click the link below to join the webinar: https-.//us02web.zoom.us/j/85950268537 Or One tap mobile: US: +19294362866, 85950268537# or +13017158592„85950268537# Or Telephone: Dial(for higher quality, dial a US: +1 929 436 2866 or +1 301 715 8592 +1 253 215 8782 or +1 346 248 7799 Webinar ID: 859 5026 8537 number based on your current location): ,r +1 312 626 6799 or +1 669 900 6833 or International numbers available: https-//us02web.zoom.us/u/kcWv6XPOHc 3 3of50 PROCEDURES FOR PUBLIC INPUT IN ACCORDANCE WITH RESOLUTION NO. R-20-34 Reqular Citv Council Meetings Public input is ALLOWED under the heading: Consent Agenda Public Hearings Unfinished Business New Business Public Input Public Input is NOT ALLOWED under the headings: Proclamations, Awards, Brief Announcements (except for individuals giving or accepting proclamations or awards); Committee Reports and Appointments (except for committee members giving reports and applicants being interviewed for committee appointments); City Council Matters Charter Officer Matters Council may, by majority vote, call upon an individual to provide input if desired. Workshops and Special Meetinqs Public input is limited to the item on the agenda Time Limit Input on agenda items where public input is permitted on agendas is FIVE MINUTES; however, City Council may extend or terminate an individual's time by majority vote of Council members present. Input Directed to Chair Speakers shall address the City Council IMMEDIATELY PRIOR TO CITY COUNCIL DELIBERATION of the agenda item and ALL INPUT SHALL BE DIRECTED TO THE CHAIR, unless answering a question of a member of City Council or City staff. Individuals shall not address City Council after commencement of City Council deliberation on an agenda item after public input has concluded, providing, however, the Mayor and members of City Council may recall an individual to provide additional information or to answer questions. Certain Remarks Prohibited Personal, impertinent, and slanderous remarks, political campaigning, and applauding are not permitted and may result in expulsion from the meeting. The Chair shall make determinations on such remarks, subject to the repeal provisions below. Appealinq Decisions of Chair Any member of Council may appeal the decision of the Chair to the entire Council. A majority vote of City Council shall overrule any decision of the Chair. Public Input Heading on Agenda The heading on Regular Meeting agendas "Public Input" provides an opportunity for individuals to bring NEW INFORMATION OR REQUESTS TO CITY COUNCIL NOT OTHERWISE ON THE PREPARED AGENDA. Individuals are asked to attempt to resolve matters with staff prior to meetings. Individuals are asked to provide copies of material for Council one week prior to the meeting if they intend to refer to specific material. City Council will not debate an issue during Public Input but may by consensus direct a Charter Officer in regard to the item if necessary or place a requested item on a future agenda. 4of56 M Of SEBAS-TUVV HOME OF PELICAN ISLAND RIVERFRONT COMMUNITY REDEVELOPMENT AGENCY AGENDA TRANSMITTAL FORM COUNCIL MEETING DATE: September 29, 2021 AGENDA ITEM TITLE: Resolution No. R-22-01 Adopting the Riverfront Community Redevelopment Agency (CRA) Budget for the Fiscal Year 2021-2022 RECOMMENDATION: Move to Approve Resolution R-22-01 BACKGROUND: In accordance with Florida Statute 189.418(3), a Community Redevelopment Agency (CRA) "shall adopt a budget by resolution each fiscal year". The recommended budget for Fiscal Year 2021-2022, beginning October 'l, 2021 and ending September 30, 2022, is included as EXHIBIT "A" to the Resolution for the CRA Board's consideration. The recommended operating expenditures, grants and aids and transfers for capital projects budget for the CRA is $595,827. Capital projects include the initial phase of the Harrison Street Park Plaza and the final phase on the working waterfront. The total tax increment revenue is projected to be $431,641. The CRA budget is also incorporated in the Annual Budget for the City of Sebastian as a Special Revenue Fund, which is scheduled for final approval on September 29tn ATTACHMENTS: Resolution R-22-01, including Exhibit "A". IF AGENDA ITEM REQUIRES EXPENDITURE OF FUNDS: Total Cost: $595,827 Fund to Be Utilized for Appropriation: Community Redevelopment Agency Fund Administrative Services Departm t R City Attorney Review: _ Procurement Division Review, if plic� n1f t✓� City ManagerPut%orization: G Date: V/�%!,2/ 5 of 50 CITY OF SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY RESOLUTION NO.22-01 A RESOLUTION OF THE CITY OF SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY (CRA) ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; MAKING FINDINGS; AUTHORIZING AMENDMENTS AND TRANSFERS; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Manager of the City of Sebastian has submitted a budget for the City of Sebastian Community Redevelopment Agency (CRA) for the Fiscal Year beginning October 1, 2021 and ending September 30, 2022; and WHEREAS, the budget includes the estimated expenditures necessary to carry out the functions of the CRA for the Fiscal Year beginning October 1, 2021, and ending September 30, 2022; and WHEREAS, the budget includes the estimated revenues to be received by the CRA during said period from all sources, including tax increment funding; and WHEREAS, the CRA has examined and carefully considered the proposed budget in a duly assembled meeting; NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BOARD OF CITY OF SEBASTIAN COMMUNITY REDEVELOPMENT AGENCY: SECTION 1. The City of Sebastian Community Redevelopment Agency does hereby adopt, confirm and approve the budget attached hereto as Exhibit "A" as the budget for the CRA for the Fiscal Year beginning October 1, 2021 and ending September 30, 2022. SECTION 2. The governing board of the CRA does hereby find that: (a) The budget adopted has been prepared in accordance with generally accepted accounting principles; and (b) The estimated revenues to be received by the CRA during the Fiscal Year beginning October 1, 2021, and ending September 30, 2022 from all sources, including tax increment funding and reserves, equals the total of appropriations for expenditures in the budget during said period; and (c) The budget will regulate expenditures of the CRA and no expenditures or contracts for expenditures shall be made except in pursuance of budgeted appropriations; (d) The budget is adopted in accordance with Section 189.418, Florida Statutes. SECTION 3: In order to effect an orderly year-end closeout of all financial books and records for the CRA, the City of Sebastian City Manager is hereby authorized and directed to increase the corresponding line item appropriations in the budget to the extent of those purchase orders which shall have been issued prior to September 30, 2021, but shall not have been filled prior to that date, and is authorized and directed to pay all such purchase orders upon receipt of the goods or services therein specified from the funds so appropriated. The City of Sebastian City Manager is hereby further authorized and directed to increase the budget appropriations to the extent of any unexpended balances from state, federal or other grants as of the end of business on September 30, 2021, and to the extent of any unexpended balances, whether or not encumbered, outstanding in projects or programs as of the end of business on September 30, 2021 and all such balances shall be 6 of 50 appropriated to the corresponding accounts in the same funds in which they were outstanding as of September 30, 2021; and the City Manager shall be authorized to expend such appropriations for the purposes approved by the CRA in connection with such state, federal or other grants, and projects. The City Manager shall, prior to December 31, 2021, report to the CRA all such purchase orders, grants and projects. Corresponding changes in the anticipated revenue accounts are hereby authorized. SECTION 4: The City Manager is hereby authorized and directed to maintain and amend the budget so as to reflect the anticipated revenue and the appropriation of, and expenditure of, all grant funds and bond proceeds committed to, or received by the CRA subsequent to September 30, 2021, and prior to October 1, 2022, in accordance with the directions of the CRA as to the appropriation and expenditure of such grants and bond proceeds as and when received. The City Manager shall have the authority to transfer appropriations from one line item to another line item of the budget, so long as the total appropriations shall not be increased thereby. Transactions affecting total appropriations, other than those authorized herein in other sections shall require the prior approval of the CRA. Any such transactions are subject to any restrictive statutes or ordinances, including those authorizing the issuance of any outstanding bonds. SECTION 5: CONFLICTS: All resolutions or parts of resolutions in conflict herewith are hereby repealed. SECTION b: SCRIVENER'S ERRORS: Sections of this resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of further action of City Council by filing a corrected copy of same with the City Clerk. SECTION 7: This Resolution shall become effective October 1, 2021. The foregoing Resolution was moved for adoption by CRA Board member The motion was seconded by CRA Board member and, upon being put into a vote, the vote was as follows: Ed Dodd, Chairman Jim Hill Bob McPartlan Fred Jones Christopher Nunn The CRA Chairman thereupon declared this Resolution duly passed and adopted on this 29'hday of September, 2021. CITY OF SEBASTIAN, FLORIDA ATTEST: Jeanette Williams, City Clerk Ed Dodd, Chainnan Approved as to form and legality for the reliance by the City of Sebastian only: Manny Anon, Jr., City Attorney 7of50 EXHIBIT "A" Page 1 of 2 I CITY OF SEBASTIAN, FLORIDA 2021/2022 ANNUAL BUDGET I COMMUNITY REDEVELOPMENT AGENCY City of Sebastian Community Redevelopment Agency was created by City Ordinance in 1995, pursuant to Section 163.387, Florida Statutes. The purpose of the Community Redevelopment Agency is the removal of blighted areas and the development of such areas, pursuant to the Community Redevelopment Act of 1969. COMMUNITY REDEVELOPMENT AGENCY REVENUES Code: 140010 Amended Account FY 17118 FY 18/19 FY 19/20 FY 20/21 FY 20/21 1FY 21/22 Number Description Actual Actual Actual Budget Proiected Budget TAXES 338200 Tax Increment Revenue - Sebastian 181,652 183,130 182,732 208,819 215,305 197,927 338200 Tax Increment Revenue - County 184,879 201,086 220,508 235,065 242,367 233,714 "TOTAL TAXES 366,532 384,216 403,240 443,884 457,672 431,641 MISCELLANEOUS REVENUE 361100 Interest Income 8,730 9,791 2,426 10,331 1,250 3,000 361105 SBA Interest Earnings 1,885 4,310 2,656 0 250 1,780 362100 Rents and Royalties 36,000 36,000 36,000 36,000 36,000 36,000 366000 Contributions & Donations 0 3,000 0 0 0 0 TOTAL MISCELLANEOUS REVENUE 46,615 53,101 41,082 46,331 37,500 40,780 NON -REVENUE SOURCES 381001 Transfer from General Fund 0 20,457 0 0 0 0 389991 Fund Balance Carried Forward 116,935 49,709 0 210,248 45,670 121,406 TOTAL NON -REVENUE SOURCES 116,935 70,166 0 210,248 45,670 123,406 TOTAL RIVERFRONT REDEVELOPMENT 530,082 507,484 444,322 700,463 540,842 595,827 8 of 50 EXHIBIT "A" Page 2 of 2 CITY OF SEBASTIAN, FLORIDA 2021/2022 ANNUAL BUDGET COMMUNITY REDEVELOPMENT AGENCY EXPENDITURES Code: 140051 Account Number Descrintion OPERATING EXPENDITURES 533I00 Professional Services 533120 Consultants 533200 Audit Fees 533201 Admin Svcs Provided by the GF 533400 Other Contractual Services 534000 Travel and Per Diem 534120 Postage 534320 Water and Sewer 534400 Rents and Leases 534699 Other Capital Maintenance Expense 534830 Special Events Expense 534920 Legal Ads 535310 Road Materials & Supplies 535410 Dues & Memberships 545450 Training and Education 535710 Non -Ad Valorem Taxes TOTAL OPERATING EXPENDITURES CAPITAL OUTLAY 606300 Improvements Other Than Buildings 606900 Infrastructure TOTAL CAPITAL OUTLAY GRANTS AND AIDS 820100 Fagade/Sign Improvement Program 820200 Sewer Connection Program TOTAL GRANTS AND AIDS NON -OPERATING 909131 Interfund Trfr to CIP Fund 310 909132 Interfund Trfr to CIP Fund 320 909990 Unappropriated TOTAL NON -OPERATING TOTAL RIVERFRONT REDEVELOPMENT Amended FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 20/21 FY 21/22 Actual Actual Actual Budget Proiected Budget 5,000 5,000 5,000 5,000 5,000 5,000 0 19,705 256 0 0 0 0 0 0 0 5,000 5,000 87,740 90,372 99,076 89,725 89,725 92,655 37,013 192,224 124,774 96,296 88,722 100,282 0 0 0 500 500 300 0 0 126 0 0 100 0 365 0 0 0 0 4,728 5,480 4,217 4,300 4,300 4,300 18,706 35,466 9,653 15,503 15,000 20,000 44,525 43,460 41,210 48,500 48,500 50,000 5,828 569 121 922 1,000 500 206 0 0 0 0 0 175 670 670 795 670 795 0 0 395 275 400 395 1,990 2,928 1,396 1,478 1,400 1,500 205,911 396,239 286,894 263,294 260,217 280,827 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 34,676 0 15,000 40,000 15,000 40,000 39,495 111,245 24,424 75,577 75,577 0 74,171 111,245 39,424 115,577 90,577 40,000 250,000 0 0 0 0 0 0 0 13,448 176,594 190,049 275,000 0 0 104,556 144,998 0 0 250,000 0 11.8,004 321,592 190,048 275,000 530,082 507,484 444,322 700,463 540,842 595,827 9of50 2022 Budget and Capital Program Public Hearing for Adoption of Final Millage and Budget Wednesday, September 29, 2021 Prepared By: Ken Killgore Administrative Services Director/CFO 1 2022 Budget and Capital Program o General Fund Budget is Balanced With Rolled -back Rate of 3.0043. o Following Tonight's Public Hearing, Staff Recommends Adoption of Resolution No. R-21-17 Approving 3.0043 as the Final Millage. o Has Been Advertise in TCPalm on Saturday, September 25, 202110 0 CA 0 K Property Values and Millage: ASSESSED VALUES TAXABLE VALUES TAXES 3.1514 Versus 3.0043 1. 04% On Homestead: 3.1514 3.0043 $200,000 $202,080 $150,000 $152,080 $473 $457 10% On Others: 3.1514 3.0043 $200,000 $220,000 $200,000 $220,000 $630 $661 CHANGE (3.4%) - 4.9% ($16) $31 ........................................................................................................................................................................................................ ASSESSED VALUES $250,000 $252,600 $250,000 $275,000 TAXABLE VALUES $200,000 $202,600 $250,000 $275,000 TAXES $630 $609 $788 $826 CHANGE (3.3%) - 4.8% ($21) $38 .............................. ................... ........... ............................................. ................................... ....... --............. ......... ...........................,................. ............ ...ASSESSED VALUES $300,000 $303,120 $300.1000 $330,000 TAXABLE VALUES $2501000 $253,120 $300,000 $330,000 TAXES $788 $760 $945 $991 CHANGE (3.6%) - 4.9% ($28) $46 Taxation History Rolled -Back or Under 5 of 10 Years Rolled -Back Actual 2012-131 3.5646 3.7166 Above Rolled -Back 2013-14 3.7398 3.7166 Under Rolled -Back 2014-152 3.5446 3.8556 Above Rolled -Back 2015-163 3.6290 3.8556 Same as Prior Year 2016-174 3.6700 3.8000 Above Rolled -Back 2017-18 3.4939 3.4000 Under Rolled -Back 2018-19 3.1514 3.1514 Same as Rolled -Back 2019-20 2.9399 2.9399 Same as Rolled -Back 2020-215 2.8090 3.1514 Same as 2018-19 1 Actual was Lower than Rolled -Back the Previous 5 Years. 2 and General Fund Supplemented Roads & Storm Water. `* Early Retirement Program. Drop in Mate Kevenue 4 Final General Fund Budget Versus Amended FY2021 Budget $ 4891P997 101.1755 51669 (379,462) $ 217,959 Personnel Costs Operating Expenditures Capital Spending Transfers to Other Funds Increase in Budget —1.6% Excluding Transfers - 4.6% Increase Covers Wage Contingency, Health Insurance, 3 Positions and Election Costs. 5 Enterprise Funds: o Golf Course: Revenue $18,709 Short Due to $25,000 of Work on Parking Lot and Ditch #15. oAirport: Using DST and Airport Funds to Match FAA and FDOT Grants. o Building: Contracting for Inspections and Modifying the Front Counter. Special Revenue Funds o Local Option Gas Tax: $100,000 Sidewalks, Holding Off on Road Improvements Pending Road Assessment Study. o Discretionary Sales Tax: MIS Purchases, Police Vehicles, Balance of Public Works Compound, Stormwater Slip Lining/Pipe Replacements, Matching Funds for Canal Restoration, Construction of Square Hangars. o Riverfront CRA Fund: Working Waterfront, o Harrison Street Park Plaza, Mandated Audit. 0 VA Special Revenue Funds o Recreation Impact Fee Fund: Park Signs, Barber Street Backstops, Easy Street and Filbert Park Playgrounds. o Stormwater Utility Fund: Two Positions, Roadway Swales/Culverts, Match on Concha Dam Work, Future Funds to Tulip & Bayfront Road Crossings; and Ocean Cove Slopes. o Law Enforcement Forfeiture Fund: Unbudgeted Items. O 1, CA 0 Special Revenue/Trust Funds o Parking In Lieu Of Fund: $70,287 Balance. o Cemetery Trust Fund: Signage, Fencing and Grounds Work , Columbarium Niches in 2025. o Stormwater Utility Debt Service: Bank Note Final Maturity on 5/01/22. 9 Capital Improvement Program o Largest Items for Next Fiscal Year: $5,334,024 Public Works Compound. $11,500,000 Canal Restoration. $400,000 Concha Dam Wall. $720,000 Construction of Square Hangars. o P & Z Board on August 19th, 10 AIRPORT LEASES TO GOLF COURSE $100,000 FOR GOLF COURSE AREA: o Exhibit "A" of Resolution R-15-30 Adopted 9/23/2015 Established this Rate and Extended Lease to 9/30/45. o R-00-48 Increase Rent to $250,000 by 2010. Reduced in 2009 to $135,000; 2013 to $115,000; and 2014 to $100,,000. o Available on Laserfiche Under Below File Names: Contracts/Agreements — Property Leases — Airport — Sebastian Municipal Golf Course — R-15-30 Amendment. $6,135 FOR GOLF COURSE STORAGE BUILDING: o Adopted 9/28/2016 at $6,000 Plus Annual CPI Increases. o Available on Laserfiche Under Below File Names: N Contracts/Agreements — Property Leases — Airport — Cn Sebastian Municipal Golf Course — 2016 Lease. 0 11 INTERFUND LOANS DUE BUILDING FUND FROM GOLF COURSE: o $700,000 Irrigation System in FY2018 20 Year Amortization to FY2038. 1% Below Treasury Bond, Adjusted to .9% for 2022. Now $36,085 per Year, $584,909 Balance. o $559,684 Other Repairs (Greens/Clubhouse) No Payments Scheduled, Pay it After $700,000 Loan. DUE GENERAL FUND FROM GOLF COURSE: o $500,000 for Cash Flow Loan (Carts + Cart Paths). o Paid $351,000 in 2021, To Pay $35,000 in Future. 12 INTERFUND LOANS DUE DISCRETIONARY SALES TAX FROM AIRPORT: o $285,000 Hangar A Construction Loan. 30 Year Amortization from 9/24/08 to FY2038. 4%Interest, $260,742 Balance. o $267511 Hangar B Construction Loan. 30 Year Amortization from 8/11/10 to FY2041. 4%Interest, $257,765 Balance. 13 N Co O O DEBT DUE TO OUTSIDE PARTIES STORMWATER UTILITY BANK NOTES: o Initially $5,630,000, Bonds Refinanced in 2014. o $395,000 Remaining, Matures May 1, 2022. o Being Paid by Discretionary Sales Tax Fund. PAVING IMPROVEMENTS BANK NOTES: o Initially $2,296,000, Bonds Refinanced in 2012. o $358,000 Remaining, Matures December 1,2022. o Being Paid by Local Option Gas Tax Fund. 14 DEBT DUE TO OUTSIDE PARTIES GOLF CARTS: o $2591152 Starting FY2017-18. 0 60 Month Lease/Purchase, $50,801 Next Year. o Final Payments in FY2021-22. o Paid by Golf Course. VxRail — POLICE DEPT. HARDWARE/SOFTWARE: o $2151975 Starting FY2019-20. 0 5 Year Lease/Purchase, $43,195 Each Year. N o Final Payment in FY2023-24. A ° o Paid bv Discretionary Sales Taxes. 15 Closing Comments o Staff Recommends Approval of 3.0043 Rolled -back Rate as the Final Millage. o Staff Recommends Approval of Staff Recommendation on Final Budget. o Staff Recommends Approval of Staff Recommendation on Financial Policies. o Staff Recommends Approval of Staff Recommendation on Six -Year Capital N Improvement Program. 01 0 Cn CD 16 SEBAST_v HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL FORM COUNCIL MEETING DATE: September 29, 2021 AGENDA ITEM TITLE: Approval of Resolution No. R-21-19 to Set the Final Millage Levy for the FY 2021-2022 Fiscal Year at the Computed Rolled -back Rate of 3.0043. RECOMMENDATION: Move to Approve Resolution No. R-21-19. BACKGROUND: In accordance with Florida Statute 200.065 (7)(a)(1.), the City Council adopted a tentative millage tax rate for calendar year 2021 and budget year beginning October 1, 20,21 and ending September 30, 2022 on by City Council September 13, 2021. The City is now required to adopt a final millage levy. The millage tax rate of THREE POINT ZERO ZERO FOUR THREE (3.0043) MILLS is equivalent to the "rolled -back" tax rate and is being recommended as the final millage tax rate. This and all the other General Fund estimated revenue sources are anticipated to be sufficient to cover recommended operating expenditures and maintain the amount of accumulated emergency reserves. IF AGENDA ITEM REQUIRES EXPENDITURE OF FUNDS: Total Cost- NIA Fund to Be Utilized for Appropriation: NIA ATTACHMENTS: Resolution R-21-19 Administrative Services Department R City Attorney Review: J Procurement Division Review, if applicable: jy City Manage Aut orization: Date: 26 of 50 RESOLUTION NO. R-21-19 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A MILLAGE RATE OF 3.0043 MILLS FOR THE CALENDAR YEAR 2021 AND ALLOCATING SAME TO THE FISCAL YEAR BEGINNING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, that: Section 1. MILLAGE RATE LEVY. There is hereby Levied an Ad Valorem Tax of THREE POINT ZERO ZERO FOUR THREE (3.0043) MILLS against all real and tangible personal property for the calendar year (January 1, 2021 through December 31, 2021) and the resulting tax revenue is hereby appropriated for the General Operating Fund of the City of Sebastian for the fiscal year beginning October, 1, 2021 and ending September 30, 2022. Section 2. ROLLED -BACK RATE. The tax rate established in Section 1. is the computed "rolled -back" tax rate of 3.0043 mills. Section 3. CONFLICT. All resolutions or parts of resolutions in conflict herewith are hereby repealed. Section 4. SCRIVENER'S ERRORS. Sections of this resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of further action of City Council by filing a corrected copy of same with the City Clerk. Section 4. EFFECTIVE DATE. This resolution shall take effect immediately upon its adoption. The foregoing Resolution was moved for adoption by Councilmember The motion was seconded by Councilmember and, upon being put into a vote, the vote was as follows: Mayor Ed Dodd Councilmember Jim Hill Councilmember Bob McPartlan Councilmember Fred Jones Councilmember Christopher Nunn The Mayor thereupon declared this Resolution duly passed and adopted on this the 29a' day of September 2 02 1. ATTEST: Jeanette Williams, City Clerk CITY OF SEBASTIAN, FLORIDA By: Ed Dodd, Mayor Approved as to form and legality for the reliance by the City of Sebastian only: Manny Anon, Jr., City Attorney 27 of 50 My LT SE _ HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL FORM COUNCIL MEETING DATE: September 29, 2021 AGENDA ITEM TITLE: Resolution No. R-21-20 Adopting a Final Budget for the Fiscal Year 2021-2022 RECOMMENDATION: Move to Approve Resolution No. R-21-20 BACKGROUND: In accordance with Florida Statute 200.065, the City Council approved a tentative budget for the fiscal year 2021-2022 on September 13, 2021. Staff compiled a balanced Recommended Budget for Fiscal Year 2021-22 that assumes a millage being set at the rolled -back rate of 3.0043. Over the past several months, Staff has presented our budget recommendations to the Citizen's Budget Review Advisory Board, Planning and Zoning Commission and City Council. A complete copy of the recommended budget is available on the City's website. Schedule "A" of the Resolution summarizes the budget. Staff will be presenting a power point at this meeting for the benefit of the public. Staff recommends approval of the Resolution and the final budget amounts shown on Schedule "A". IF AGENDA ITEM REQUIRES EXPENDITURE OF FUNDS: Total Cost: NIA Fund to Be Utilized for Appropriation: NIA ATTACHMENTS: Resolution R-21-20 with Exhibit "A" Administrative Services Departme t Rey City Attorney Review: /lid,/ Procurement Division Revi , if pp ica City Manage rAut orization Date: L? /fX",f v 28 of 50 RESOLUTION NO. R-21-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2021 AND ENDING SEPTEMBER 30, 2022; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON THE INDEBTEDNESS OF THE CITY IN THE CITY' S GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AIRPORT FUND, AND BUILDING DEPARTMENT FUND AS PROVIDED FOR IN SCHEDULE "A", ATTACHED HERETO, ESTABLISHING AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Manager has submitted a Proposed Budget for the City of Sebastian for the fiscal year beginning October 1, 2021, and ending September 30, 2022; and WHEREAS, on September 13, 2021, the City Council conducted Public Hearings on the Proposed Budget and Adopted the Tentative Budget. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, that: Section 1. The City Manager's Proposed Final Budget is hereby adopted for the Fiscal Year beginning October 1, 2021 and ending September 30, 2022. Section 2. The amounts shown on the attached Schedule "A" are hereby appropriated out of the Treasury of the City, including any revenues accruing to the City available for purposes of the City's budgetary accounts. Section 3. The City Manager is hereby authorized and directed to proceed with the implementation of the service programs and projects provided for in the budget. Such implementation is to be consistent with the provisions of the City Code of Ordinances and policies established by the City Council. Section 4. The City Manager is authorized to make budget adjustments within budgetary accounts, as he deems appropriate. He is further authorized to make budget adjustments between budgetary accounts when necessary to implement programs, projects, and expenditures authorized by the City Council. All other budgetary adjustments will require approval by the City Council. Section 5. If any clause, section, or other parts of this Resolution shall be held by any Court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part shall be considered as eliminated and shall in no way affect the validity of the other provisions of this Resolution. 29 of 50 Section 6. CONFLICT. All Resolutions or parts of Resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 7. SCRIVENER'S ERRORS. Sections of this resolution may be renumbered or re - lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of further action of City Council by filing a corrected copy of same with the City Clerk. Section 8. This Resolution shall become effective October 1, 2021. The foregoing Resolution was moved for adoption by Councilmember . The motion was ,seconded by Councilmember and, upon being put into a vote, the vote was as follows: Mayor Ed Dodd Councilmember Jim Hill Councilmember Bob McPartlan Councilmember Fred Jones Councilmember Christopher Nunn The Mayor thereupon declared this Resolution duly passed and adopted on this the 29"' day of September, 2021. ATTEST: Jeanette Williams, City Clerk CITY OF SEBASTIAN, FLORIDA Ed Dodd, Mayor Approved as to form and legality for the reliance by the City of Sebastian only: Manny Anon, Jr., City Attorney 30 of 50 ATTACHMENT TO RESOLUTION R-21-20 SCHEDULE"A" BUDGET SUMMARY FISCAL YEAR 2021/2022 GENERAL FUND REVENUES: 001501 Taxes and franchise fees $ 9,382,099 001501 Licenses and permits 170,350 001501 Intergovernmental 3,113,075 001501 Charges for services 771,650 001501 Fines and forfeits 50,900 001501 Miscellaneous 236,100 001501 Transfers in 35,000 Total Revenues $ 13,759,174 EXPENDITURES: 010001 City Council $ 60,500 010005 City Manager 330,971 010009 City Clerk 280,644 010010 City Attorney 210,280 010020 Administrative Services 751,020 010021 Management Information System 593,313 010041 Police Administration 956,818 010043 Police Operations 3,681,798 010047 Police Detective Division 1,179,848 010049 Police Dispatch Unit 668,653 010045 Code Enforcement Division 199,043 010052 Roads and Maintenance 1,098,829 010054 Fleet Management 228,687 010056 Facilities Maintenance 550,753 010059 Cemetery 132,937 010057 Leisure Services 1,255,182 010080 Community Development 554,223 010099 Non -departmental 1,025,675 Total Expenditures $ 13,759,174 1 31 of 50 ATTACHMENT TO RESOLUTION R-21-20 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2021/2022 ,SPECIAL REVENUE FUNDS LOCAL OPTION GAS TAX FUND 120010 REVENUES Taxes $ 735,600 Miscellaneous 15,473 Total Revenues $ 751,073 120051 EXPENDITURES Operating $ 44,300 Capital Outlay 4,870 Debt service 242,801 Transfers out 100,000 Unappropriated 359,102 Total Expenditures $ 751,073 DISCRETIONARY SALES TAX FUND 130010 REVENUES Taxes $ 4,311,580 Miscellaneous 48,500 Appropriation from prior year 2,860,825 Total Revenues $ 7,220,905 130051 EXPENDITURES Transfers out $ 7,220,905 Total Expenditures $ 7,220,905 RECREATION IMPACT FEE FUND 160010 REVENUES Impact fee $ 150,000 Miscellaneous 10,000 Restricted cash balance carryforward 65,000 Total Revenues $ 225,000 160051 EXPENDITURES Transfers out $ 225,000 Total Expenditures $ 225,000 STORMWATER UTILITY FUND 163010 REVENUES Stormwater utility fee $ 1,952,000 Miscellaneous 4,244 Restricted cash balance carryforward 154,703 Total Revenues $ 2,110,947 163051 EXPENDITURES Operating $ 1,792,947 Capital Outlay 103,000 Transfers out 215,000 Total Expenditures $ 2,110,947 2 32 of 50 ATTACHMENT TO RESOLUTION R-21-20 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2021/2022 SPECIAL REVENUE FUNDS - CONTINUED PARKING IN -LIEU -OF FEE FUND 1900I0 REVENUES Miscellaneous $ 3,069 Total Revenues $ 3,069 190051 EXPENDITURES Unappropriated 3,069 Total Expenditures $ 3,069 LAW ENFORCEMENT FORFEITURE FUND I900I0 REVENUES Fines and forfeits Miscellaneous 250 Total Revenues S 1,250 I90051 EXPENDITURES Unappropriated S 1,250 Total Expenditures S 1,250 COMMUNITY REDEVELOPMENT AGENCY FUND 163010 REVENUES Tax Increment - Sebastian $ 197,927 Tax Increment - Indian River County 233,714 Miscellaneous 40,780 Restricted cash balance carryforward 123,406 Total Revenues S 595,827 I63051 EXPENDITURES Operating $ 280,827 Grants and Aids 40,000 Transfers out 275,000 Total Expenditures $ 595,827 DEBT SERVICE FUND STORMWATER UTILITY REVENUE BONDS 263010 REVENUES Miscellaneous $ 600 Transfers in 233,403 Restricted cash balance carryforward 167,831 Total Revenues $ 401,834 263051 EXPENDITURES Debt service S 401,834 Total Expenditures $ 401,834 3 33 of 50 ATTACHMENT TO RESOLUTION R-21-20 SCHEDULE"A" BUDGET SUMMARY FISCAL YEAR 2021/2022 CAPITAL PROJECTS FUNDS REVENUES Transfers from Other Funds $ 7,802,502 Grants 11,876,000 Total Revenues $ 19,678,502 EXPENDITURES Transportation $ 6,154,024 Recreation 225,000 Physical Environment t2,265,000 Public Safety 422,083 General Government 612,395 Total Expenditures $ 19,678,502 ENTERPRISE FUNDS GOLF COURSE FUND 410010 REVENUES: Charges for services $ 1,546,316 Restricted cash balance carryforward 18,709 Total Revenues $ 1,565,025 EXPENSES: GOLF COURSE ADMINISTRATION 410110 Personal services $ 316,470 Operating expenses 375,200 Capital Outlay 25,000 Repayment of Interfund Loans 71,085 Total Administration $ 787,755 GOLF COURSE GREEN DIVISION_ 410120 Operating expenses $ 588,980 Total Golf Course Green Division $ 588,980 GOLF COURSE CARTS DIVISION 410130 Personal services $ 133,655 Operating expenses 2,944 Debt Service on Cart Lease/Purchase 51,691 Total Golf Course Carts Division $ 188,290 Total Golf Course Expenses $ 1,565,025 4 34 of 50 ATTACHMENT TO RESOLUTION R-21-20 SCHEDULE"A" BUDGET SUMMARY FISCAL YEAR 2021/2022 ENTERPRISE FUNDS - CONTINUED AIRPORT FUND 450010 REVENUES Charges for services $ 606,727 Miscellaneous revenues 22,505 Total Revenues $ 629,232 450110 EXPENSES: Personal services $ 76,303 Operating expenses 354,635 Debt service 36,500 Capita! Outlay 7,500 Unappropriated 154,294 Total Expenses $ 629,232 BUILDING DEPARTMENT 480010 REVENUES Charges for services $ 996,500 Miscellaneous revenues 76,176 Restricted cash balance carryforward 164,176 Total Revenues $ 1,236,852 480110 EXPENSES: Personal services $ 782,669 Operating expenses 338,183 Capital Outlay 116,000 Total Expenses $ 1,236,852 TOTAL BUDGET SUMMARY GENERAL FUND SPECIAL REVENUE FUNDS DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS ENTERPRISE FUNDS TOTAL BUDGET FOR ALL FUNDS $ 13,759,174 10,908,071 401,834 19,678,502 3,431,109 $ 48,178,690 5 35 of 50 an OF SEBASMAN HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL FORM COUNCIL MEETING DATE: September 29, 2021 AGENDA ITEM TITLE: Resolution No. R-21-21 Adopting Financial Policies for Fiscal Year 2021-2022 RECOMMENDATION: Move to Approve Resolution R-21-21 BACKGROUND: Pursuant to City of Sebastian Resolution 06-20, the City's financial policies shall be readopted annually. These policies incorporate relevant statutory requirements and authoritative guidance provided for sound and responsible governmental financial management. They are incorporated into the Annual Budget document and provide a ready reference to how significant financial matters need to be addressed. This document has not been modified from that adopted for Iasi. year. The policies as stated are deemed adequate to provide the necessary guidance. ATTACHMENTS: Resolution R-21-21, including Attachment "A". IF AGENDA ITEM REQUIRES EXPENDITURE OF FUNDS: Total Cost: NIA Fund to Be Utilized for Appropriation: NIA Administrative Services Depart e Rev'�� City Attorney Review: Procurement Division Review, if applica�5le: APB City Manager uthprization Date: i /�f 36 of 50 CITY OF SEBASTIAN RESOLUTION NO. R-21-21 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING FINANCIAL POLICIES GOVERNING VARIOUS AREAS OF BUDGET AND FINANCE AS PROVIDED FOR IN ATTACHMENT "A"; PROVIDING FOR CONFLICTS; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Government Finance Officers Association of the United States and Canada recommends best practices in various areas for Finance and Budget; and WHEREAS, the City Council deems it to be necessary to adopt and readopt such financial policies on an annual basis, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, as follows: SECTION 1. AMENDING FINANCIAL POLICIES: The City Council of the City of Sebastian hereby adopts Financial Policies attached hereto as Attachment "A" governing the Operating Budget, Revenue, Performance Measurement, Investment, Capital Improvement Plan, Debt Management, Fund Balance and Use of Surplus. SECTION 2. CONFLICT. All resolutions or parts of resolutions in conflict herewith are hereby repealed. SECTION 3. SCRIVENER'S ERRORS; Sections of this resolution may be renumbered or re - lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of further action of City Council by filing a corrected copy of same with the City Clerk. SECTION 4. This Resolution shall take effect upon adoption. The foregoing Resolution was moved for adoption by Council Member Motion was seconded by Council Member and, upon being put to a vote, the vote was as follows: Mayor Ed Dodd Councilmember Jim Hill Councilmember Bob McPartlan Councilmember Fred Jones Councilmember Christopher Nunn The Mayor thereupon declared this Resolution duly passed and adopted this 29th day of Septen-iber, 2021. ATTEST: Jeanette Williams, City Clerk CITY OF SEBASTIAN, FLORIDA IN Ed Dodd, Mayor Approved as to Form and Legality for Reliance by the City of Sebastian Only: uo- a Manny Anon, Jr., City Attorney 37 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies City of Sebastian's financial policies set forth the basic framework for overall fiscal planning and management and set forth guidelines for both current activities and long-range planning. These policies are reviewed annually to assure the highest standards of fiscal management and were formally adopted by the City Council at a public meeting on September 29, 2021. The City Manager and the Management Team has the primary role of reviewing financial actions and providing guidance on financial issues to the City Council. I. Overall Goals The overall financial goals underlying these policies are: 1. Fiscal Conservatism: To ensure the city is in a solid financial condition at all times. This can be defined as: A. Cash Solvency — the ability to pay bills B. Budgetary Solvency — the ability to balance the budget C. Long Term Solvency — the ability to pay future costs D. Service Level Solvency — the ability to provide needed and desired services 2. Flexibility: To ensure that the city is in a position to respond to changes in the economy or new service challenges without an undue amount of financial stress. 3. Compliance with All Statutory Requirements: As set forth by the State of Florida and the City ordinances. 4. Adherence to the highest Accounting and Management Practices: As set by the Government Finance Officers' Association standards for financial reporting and budgeting, the Government Accounting Standards Board and other professional standards. II. Operating Budget Policies The City Administrative Services Department, with support and general direction from the City Manager, coordinates the budget process. The formal budgeting process begins in February and ends in September and provides the primary mechanism by which key decisions are made regarding the levels and types of services to be provided, given the anticipated level of available resources. Revenues and expenditures are projected on the basis of information provided by City departments, outside agencies, current rate structures, historical data and statistical trends. A. Budget Process The development of the budget is guided by the following budget policies: 1. A budget calendar will be designed each year to provide a framework within which the interactions necessary to formulate a sound budget could occur and ensure that the City complies with State legal mandates. 2. The budget must be balanced for all funds. Total revenues and other available funds must equal total estimated expenditures for each fund (Section 166.241 Florida Statutes requires all budgets to be balanced). I All operating funds are subject to the annual budget process and reflected in the budget document. 4. The enterprise operations of the City are intended to be self-supporting; i.e., current revenues are hoped to cover current expenditures, including debt service. An administrative service fee will be paid to the General Fund by each enterprise fund. This assessment is calculated based upon a percentage (ratio of both the number of full-time equivalent employees of the enterprise fund/total number of full-time equivalent employees of the City and ratio of the operating budget of the enterprise funds/total operating budget of the City) of total budgeted General Fund administration expenditures (includes City Council, City Manager, City Attorney, City Clerk, Administrative Services, Management Information Systems, Community Development and Facilities Maintenance). An administrative service fee is assessed by the General Fund against the Community Redevelopment Agency (CRA) Fund of the City. This assessment will be based on 75% of the pay and benefits of the Community Development Director/CRA Manager and corresponds with the amount of time devoted to administrative support for the CRA. The Stormwater Fund is assessed for 50% of the compensation paid to the City Engineer and 30% fbr the administrative assistant. Page 1 of 10 38 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies 5. Pursuant to Ordinance 05-16, stormwater utility fees can be utilized to fiend stormwater operations, in addition to capital improvements. Stormwater operations were previously accounted for in the General Fund and partially reimbursed with transfers from the Stormwater Fund. However, since the FY 2019 Budget, stormwater operating expenditures are directly accounted for within the Stormwater Fund to better disclose how the fees are being used. 6. In no event will the City of Sebastian levy ad valorem taxes against real property and tangible personal property in excess of 10 mills, except for voted levies (Section 200.081 of Florida Statutes places this milIage limitation on all Florida municipalities.) 7. The City will budget 96 percent of anticipated gross ad valorem proceeds to provide an allowance for discounts for early payment of taxes (Section 200.065 of Florida Statutes states that each taxing authority shall utilize not less than 95 percent of the taxable value.) 8. Employees covered by the Coastal Florida Public Employee Labor Agreement will have 9% of their wages contributed to a pension plan offered by the Communication Workers of America. The locally administered defined benefit pension plan for police officers will be funded in accordance with the required annual contribution calculated by an independent actuary but no less than 14.6% of the covered payroll. All other employees will have 9% of their wages contributed to a deferred compensation retirement program sponsored by the International City Management Association. 9. The City will coordinate development of the capital improvement budget with the development of the annual operating budget. Each item included in the capital improvement budget is reviewed for its impact on the operating budget. The review quantifies four main factors, which are maintenance costs, improved efficiency, reduction in liability exposure and savings from taking replaced items out of service. Other considerations include the expectation of generating additional revenue, changes in personnel requirements and consistency with the City's Comprehensive Plan. B. Basis of Budgeting The basis of budgeting for governmental funds (General, Special Revenue, Debt Service Funds, and Capital Project funds) shall be prepared on a modified accrual basis of accounting. This means unpaid financial obligations, such as outstanding purchase orders, are immediately reflected as encumbrances when the cost is estimated, although the items may not have been received. However, in most cases revenue is recognized only after it is measurable and actually available. The budgets for the proprietary funds — Golf Course, Airport and Building Department — are prepared using the accrual basis of accounting. Proprietary funds also recognize expenses as encumbered when a commitment is made (e.g., through a purchase order). Revenues, on the other hand, are recognized when obligated to the City. Purchase orders for goods and services received prior to the end of the current fiscal year will be eligible for payment immediately following the close of the fiscal year, Encumbrances for all other purchases, excluding the capital projects funds purchases, will automatically lapse at the close of the fiscal year. The Comprehensive Annual Financial Report (CAFR) presents the status of the City's finances on the basis of Generally Accepted Accounting Principles (GAAP). Since FY 2001, the CAFR has been prepared in compliance with Governmental Accounting Standards Board (GASB) Statement 34 requirements. The CAFR shows fund expenditures and revenues on both a GAAP basis and budget basis for comparison purposes. In most cases, this conforms to the way the City prepares its budget with the following exceptions: 1. Any principal payments on long -teen debt within the enterprise funds are applied to the outstanding liability on a GAAP basis as opposed to being expended when paid on a budget basis. 2. Capital outlay within the proprietary funds are recorded as assets on a GAAP basis and expended on a budget basis. 3. Depreciation expense is not budgeted. 4. Inventory is expensed at the time it is used. 5. Compensated absences liabilities that are expected to be liquidated with expendable available financial resources are accrued as earned by employees on a GAAP basis as opposed to being expended when paid on a budget basis. Page 2 of 10 39 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies C. Guidelines The Comprehensive Annual Financial Report (CAFR) presents the status of the City's finances on a basis consistent with Generally Accepted Accounting Principles (GAAP). Therefore, a statement of net assets and a statement of activities are presented for total governmental funds and total proprietary funds on an accrual basis of accounting. Additional statements then identify major governmental funds and individual proprietary hinds, with the modified accrual basis of accounting used for Governmental funds and accrual basis of accounting used for the proprietary and trust funds. In order to provide a meaningful comparison of actual results to the final budget, the CAFR presents the City's operations on a GAAP basis with a reconciliation to presentations of fund revenue and expenditures on a budget basis for the General, Special Revenue, and Debt Service funds. Current revenues shall be sufficient to support current expenditures. The Administrative Services Department will monitor each fund and make timely budgetary recommendations and adjustments to be sure no expenditures are in excess of appropriations at fiscal year end, which is not permitted under Florida State Statutes. The budget process and format shall be performance -based and focus on goals, objectives, programs, and performance indicators. The budget will provide adequate funding for maintenance and replacement of capital plant and equipment. D. Budget Amendment 1. Changes to total fund appropriations and uses of contingency appropriations may only be approved by the City Council, 2. Shifts in appropriations within fund totals may be done administratively on the authority of the City Manager. In most cases the City Manager will request City Council's approval, since any significant item prompting the change will usually go to the City Council (e.g., award of contract, additions to staff, contract change order). Procedures for transfers between appropriations and delegation of budget responsibility will be set by the City Manager. 3. A Budgetary Control System will be maintained to ensure compliance with the budget. Monthly operating statements are provided to all Department Heads and Quarterly budget status reports will be provided to the Citizen's Budget Review Board and the City Council comparing actual versus budgeted revenue and expense activity for all budgeted funds. E. Planning The City will annually prepare and distribute to departments and the City Council a Five -Year Forecast for the period beyond the next fiscal year. The forecast will include estimated revenues, operating costs and future capital improvements included in the capital improvement plan, as well as projected fund balances. III. Revenue Policies A. Revenue Projections The City shall estimate its annual revenues by objective and analytical processes. The City shall maintain a diversified and stable revenue system to the extent provided by law to insulate it from short-term fluctuations in any one revenue source. B. User Fees The City shall recalculate on an annual basis the full cost of selected activities currently supported by user fees and charges to identify the impact of inflation and other cost increases. To the extent possible, the City shall set fees and user charges for the Golf Course, Airport and Building Enterprise Funds with the intent to have them fully support the total direct and indirect costs of their respective operations, including any debt service and depreciation. Page 3 of 10 40 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies IV. Performance Measurement Policies A. Establishing Performance Requirements Annually, each department shall develop departmental performance measures that correspond with the department programs and file them with the City Manager's Office. Goals should be related to core services of the department and should reflect stakeholder needs. The measures should be of a mix of different types, including effectiveness, efficiency, demand and workload. Measures should have sufficiently aggressive "stretch" goals to ensure continuous improvement. ➢ Workload — Measures the quantity of activity for a department (e.g., number of calls responded to). ➢ Demand — Measures the amount of service opportunities (e.g.. total number of calls). ➢ Efficiency — Measures the relationship between output and service cost (e.g., average cost of the response to a service call). ➢ Effectiveness — Measures the impact of an activity (e.g., percent of people who feel safe). Department Directors shall establish perfonmance measures for each program within their department. These must be linked to the department wide goals and objectives being supported. Systematic and cost effective methodologies must also be developed to monitor and project the established performance measures. Supervisors shall insure that fair, objective and aggressive performance measures are identified for each employee or work group that directly supports program goals and objectives and that an evaluation of the success in accomplishing departmental measures are part of the employee's annual performance review. B. Reporting Performance Quarterly summaries of progress on goals and objectives and departmental performance measures will be provided to the Administrative Services Director for publishing in the City Council's Quarterly Budget to Actual Report. V. Investment Policies A. Investment Management The City Administrative Services Department shall perform a cash flow analysis of all funds on a regular basis. Disbursement, collection, and deposit of all funds will be scheduled to insure optimum cash availability. When permitted by law, the City shall pool cash from each respective fund for investment purposes. The Administrative services Director, as the City's Chief Financial Officer, shall select and manage all City investments. Investments shall always be made with the priority focused on achieving safety, liquidity and optimal return of the investments, in that order. Further detail on allowed investments is contained in a separately published investment policy. B. Investment Analysis The Administrative Services Director shall review the investment policy established for investing surplus funds to account for changes in legislation and market conditions on a regular basis. The Administrative Services Director shall prepare quarterly investment portfolio reports containing information on the securities being held and the returns of each investment category. The City's Chief Financial Officer shall meet and discuss any changes in investment strategies or differences in investment holdings with an Investment Committee consisting of the Administrative Services Director, the City Manager and a third person selected by the City Manager. Page 4 of 10 41 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies VI. Capital Improvement Program Policies A. Capital Improvement Plan The City shall adopt an annual Capital Budget based on the Capital Improvement Plan and make all capital improvements in accordance with it. Future capital improvement expenditures necessitated by changes in population, real estate development, or in economic base will be calculated and included in the capital improvement plan projections. The City will determine and use the most prudent financial methods for acquisition of capital improvement projects based upon market conditions at the time of acquisition. Capital Replacement Programs — The City shall forecast capital replacement and maintenance needs for at least five-year periods beyond the budget year and update this projection each year. From this, a maintenance and replacement schedule shall be developed and implemented. Funding for capital replacement may be obtained through excess year-end surpluses as identified in the Use of Surplus Policies. Maintenance programs shall be paid for on a pay-as-you-go basis. The City will determine and use the most prudent financial methods for acquisition of capital equipment, based upon market conditions at the time of acquisition. B. Definition Capital improvements include streets, buildings, building improvements, park expansions/improvements, new parks, airport runways, infrastructure improvements, and acquisitions of equipment. Projects in the Capital Improvement Program generally cost more than $750 and last at least five years (with the exception of computer software if $5,000 or greater). For accounting purposes, these lesser cost capital items are often included, in order to easily reconcile the initial year with the capital accounts budgeted in that year's Operating Budget. Significant allocations to some programs that do not meet the definition of capital items may also be reflected in the Program in order to present the complete financial plan, although they may ultimately be accounted for as operating expenditures. C. Alignments The City shall coordinate the development of the Capital Improvement Program plan with the development of the Operating Budget, as well as ensuring compliance with the Comprehensive Plan Capital Improvement Element. Future operating expenditures and revenues associated with new capital improvements will be projected and included in the Capital Improvement Program Forecasts. D. Project Approvals Capital projects submitted for approval must be justified in terms of how the project supports the achievement of the City's strategic priorities. The originating department of the capital improvement project will identiify the estimated costs and impacts on revenue and operating costs for each capital project proposal. Projects are prioritized and approved based on the relevancy of the project to the City's strategic plan and the impact on the end stakeholder(s). E. Maintenance The City shall maintain all capital assets at a level adequate to protect the City's capital investment and minimize future maintenance and replacement costs. F. Physical Inventory An annual physical inventory will be conducted to ensure that all capital assets listed in the City's financial system are accounted for, and that sufficient internal control over capital items is exercised. Further del:ail on capital purchases and dispositions is detailed in a separately published policy. Page 5 of 10 42 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies VII. Debt Management Policies A. Market Review The City's Administrative Services Director, in conjunction with the Financial Consultant, shall review its outstanding debt annually for the purpose of determining if the financial marketplace will afford the City the opportunity to refund an issue and incur less debt service costs. In order to consider the possible refunding of an issue, a present value savings of at least three percent (3%) over the life of the respective issue should be attained. B. Debt Financing for Capital Assets 1. Short-term Borrowing Short-term borrowing or lease/purchase contracts should only be considered for financing major operating capital equipment when the Administrative Services Director, along with the City's Financial Consultant, determines that this is in the City's best financial interest. Lease/purchase decisions should have the concurrence of the appropriate department/division head and should consider the net cost after factoring in anticipated maintenance expenditures. 2. Issuance of Long-term Debt When the City finances capital projects or purchases by issuing long-term debt, it shall amortize the debt over a term not to exceed the average useful life of the project(s) financed. Financing utilizing bank notes will be preferred to avoid the higher issuance cost typically incurred with bonded debt. Except in the most unusual instances, the City will seek competitive bids to assure it selects the financial institution with the most advantageous terms. If General Obligation Bonds are issued, the City's goal will be to limit the maturity to fifteen (15) years. When possible, the City shall use a special assessment or self-supporting financing instead of general obligation bonds, so those benefiting from the improvements will bear all or part of the cost of the project financed. C. Debt Service Levels Annual General Fund debt service expense, if any, will be limited to eight percent (8%) of the General Fund expenditures budget. The City will limit its total outstanding General Obligation debt, if any, to five percent (5%) of the assessed valuation of taxable property. The City will limit the amount of Variable Rate debt to fifteen percent (15%) of the total debt outstanding. D. Bond Ratings and Full Disclosure The City recognizes the importance of favorable bond ratings by the various rating agencies. Bond ratings will be obtained when bonds are issued and will be regularly updated for the term of the issue. The Administrative Services Director, along with the Financial Consultant, shall periodically review possible actions to maintain or improve its bond ratings and shall maintain good communications with bond rating agencies and its bond insurers about its financial condition. The Administrative Services Director shall coordinate all communications to ensure a professional and factual response to any inquiries. The City shall follow a policy of "full disclosure" in its Comprehensive Annual Financial Report and bond prospectuses. The Administrative Services Director shall assure that all legally required filings are made in regard to outstanding financings. Page 6 of 10 43 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies E. Decision Making and Analysis The City's strategic planning and budgeting decisions are based on a number of processes currently in place. The specific tools used are: Citizen Advisory Boards — (e.g., Citizens Budget Review Board) are teams made up of Residents and City staff to address specific concerns and provide direction and feedback; •:• Master Planning — Specific functions and processes are included in written plans, such as the Comprehensive Plan, Stormwater Master Plan, Community Redevelopment Agency Master Plan and the Airport Master Plan; ❖ Fiscal Impact Model — Allocation methodology that quantifies average and marginal revenues and the costs of new development by land use type; ❖ Revenue Forecasting Model — Statistical time series analysis and tracking model of major revenue sources; ❖ Performance Measurement System Quarterly performance evaluations and reports; ❖ Capital Budgeting Tools — Present Value Payback, Net Present Value Analysis, Own/Lease Analysis, and Return on Investment (ROl) Analysis; ❖ Five -Year Financial Plan — Multi -year forecasting of revenues and expenditures beyond the next budget year for all major City funds; Ten -Year Fleet Replacement Program — Equipment maintenance and replacement schedule covering the useful life of all vehicle classes; Ten -Year Equipment and Maintenance Program - maintenance and replacement schedule covering the useful life of all major equipment, other than vehicles; :• Financial Trend Monitoring System — Systematic analysis of major financial indicators; VIII. Fund Balance Policies On an annual basis, after the year-end audit has been completed, but no later than April 1, the City's Chief Financial Officer shall update schedules of all fund surpluses and deficits, with projections of reserve requirements and any plan for the use of any excess surplus for the current year in accordance wi11 the Financial Balance Policies and Use of Surplus Policies. This will be reviewed to ensure compliance with stated and adopted policies, but also to analyze the total reserve and surplus picture to ensure that the policies as adopted do not inadvertently create adverse effects. The City's Administrative Services Director shall provide recommendations to the City Manager for any changes to the Fund Balance Policies and Use of Surplus Policies based on needs identified in this analysis. A. General Fund uncommitted and unassigned fund balances will be maintained at a target amount of five million dollars ($5,000,000) as a reserve for declared natural disasters. This approximates an aniount calculated to sustain City operations in the aftermath of unforeseen or emergency events, such as hurricanes declared to be natural disasters. Key assumptions of this calculation are: a. That damage to City -owned and private property will amount to a loss of no greater than 30% in overall property values; b. That the damage occurs after the maximum proposed millage is established for the next fiscal year, resulting in up to a year's delay before there is the option of increasing property tax revenues; c. Property taxes, franchise fees, utility service taxes and other revenues will decline; d. There would be significant public safety and public works employee overtime; large outlays for debris removal; plus expenditures for repairing and replacing City facilities; e. Reimbursements from insurance claims will occur within six months and FEMA claims will occur within a year; Page 7 of 10 44 of 50 I:�I W 1►:[�J��i'I��`M If�:� City of Sebastian, Florida Financial Policies B. In addition, the City shall assign any General Fund operating surplus for the fiscal year (revenues in excess of expenditures) to restore the Capital Renewal and Replacement Reserve to a balance no greater than $275,000. This Reserve is assigned for the purpose of allowing the City Manager to immediately proceed with repairing or replacing essential equipment or facilities in instances where those items have not been budgeted. Such expenditures shall be governed by the purchasing thresholds set by City Code Section 2-10. The necessary budget adjustments for these items shall be reported to and approved by the City Council along with the next Quarterly Financial Report. C. Consideration shall also be given to establishing extra cushions for unanticipated events or extraordinary expenditures, such as: a. Uncontrollable shortfalls in intergovernmental revenue occurring due to poor economic conditions at the State and National levels or the willful political action of those attempting to undermine home rule and the effectiveness of City government. (General Fund receives about $4 million each year from Communication Service Taxes, State Revenue Sharing, Motor Fuel Taxes and the Half -cent Sales Taxes which is about 29% of its total revenues); b. Significant payouts of unused employee leave accruals at the time they terminate. These are typically manageable by covering them from the relevant department's other budgeted accounts but the departure of 100% of the employees would create a total payout of about $1.4 million in wages alone. In response to some emergency situations, the City could be faced with excessive voluntary departures or perhaps mandatory layoffs due to the financial situation. c. Unanticipated expenditures on capital outlays or capital replacements of such a magnitude that are beyond the possibility of immediately funding within any legal or normally reasonable means. (1) Although financing from financial institutions may be feasible in certain isolated cases, this possibility may not be available should those creditors have to also consider other events the City could be dealing with at the time. (2) Additional cushions could be established in certain Special Revenue Funds (Local Option Gas Tax, Discretionary Sales Tax, Community Redevelopment Agency and Stormwater Utility Funds) as a capital reserve for this purpose. d. The unfunded Police Pension Fund Actuarial Accrued Liability is also something that could possibly be a concern. Annual contributions to the pension plan are calculated to cover the vested benefits being accumulated by the Police Officers but the deficit occurs when plan changes are made or when assumptions are changed or when certain assumptions such as investment income do not materialize. An immediate payout is not required, since repayment of the deficit is allowed to be amortized and calculated into future annual payment requirements. Some consideration could be given to either paying more than required on the annual requirement or establishing another cushion of cash reserves in case political forces create a mandate in the future to pay off the deficit. e. Localized emergencies that may not be eligible for insurance or FEMA reimbursement, such as flooding, tornados, sink holes, earth quakes, civil disorders, terrorism, explosions, fires„ etc. Emergencies of this nature would most likely impact operational accounts such as overtime pay expenditures and utility tax and franchise fee revenues. To the extent possible without increasing tax rates, a cushion of some amount would be warranted. D. Target amounts should be established and reviewed annually during the budgeting process for each of the above. Generally, the targets would be calculated as a reasonable percentage of the total based on a rational analysis of the perceived likelihood of the event actually occurring and amounts that would be sufficient to reduce the negative impact of the event to acceptable levels. At the discretion of the City Council, the creation or replenishment of established target amounts will occur as soon as reasonably possible without tax rate increases or further damaging ongoing levels of service to the public. Page 8 of 10 45 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies E. In some instances, the City's Golf Course, Airport and Building Enterprise Funds may be impacted by the foregoing emergency conditions. Certainly, the Golf Course and Airport may not have the resources that might be necessary to effectively restore their operations. While considering the Ievel of targeted cash reserve balances in the General Fund and Special Revenue Funds, it must be recognized that these operations may also need financial assistance to recover. F. In conclusion, the following Fund Balance Policies for funding amount targets will be in effect: a. Declared National Disasters - $5,000,000 Target Balance. b. Capital Renewal and Replacement Reserve — Replenished Up to $275,000 from Operating Surpluses. c. ShortfalIs in Intergovernmental Revenues — $400,000 Based on 10% of Annual State Revenues. d. Employee Leave Accrual Payouts $440,000 Based on 25% of Accumulated Liability. e. Capital Outlay Reserve — Set Aside 5% in Certain Special Revenue Funds: i. Local Option Gas Tax— $37,000 based on 5% of budget of gas taxes. ii. Discretionary Sales Tax — $216,000 based on 5% of budget for sales taxes. iii. Community Redevelopment Agency — $22,000 based on 5% of budget for tax increment receipts. iv. Stormwater Utility $97,000 based on 5% of budget for stormwater fee receipts. f. Unfunded Police Pension Liability — Address this by increasing annual contribution when possible. g. Localized Emergencies — The severity of such events is difficult to envision, thus it is assumed that other balances would have to be utilized. h. The total funding target for General Fund to cover items a, b, c and d. would be $6,487,000, which exceeds current balances. These are to be fully funded as soon as possible by using accumulated Operating Surpluses that result from revenues exceeding expenditures. IX. Use of Surplus Policies It is the intent of the City to use all uncommitted or unassigned surpluses to accomplish three primary goals: meeting fund balance policies, avoidance of future debt, and reduction of outstanding debts or liabilities. The City will always avoid using fund balances or year-end surpluses to cover ongoing operating expenses. A. Any surpluses realized in the General Fund may, at the discretion of the City Council, be used to restore fund balance targets or other purposes in the following order of priority: 1. $5,000,000 target reserve for declared national disasters. 2. $275,000 maximum start of the fiscal year Capital Renewal and Replacement Reserve. 3. $400,000 target reserve for shortfalls in intergovernmental revenues. 4. $440,000 target reserve for payouts of terminating employee leave accruals. 5. AdditionaI payments to reduce the Police Pension Trust Fund Unfunded Actuarial Accrued Liability. B. After fully satisfying the fund balance targets or additional payments, surpluses may be used for the following purposes, listed in order of priority: Additional Cash Payments for Capital Improvement Program Projects. Using cash to purchase capital items that may otherwise be purchased with the proceeds from debt will reduce the future debt burden of the City. This strategy may be beneficial but a financial analysis should be performed to detennine the greatest net present value savings. Cemetery Permanent Trust Fund. After all other needs have been satisfied, excess surpluses may be transferred to the Cemetery Permanent Trust Fund established to care for the Cemetery. The amounts transferred shall be deemed corpus to the Cemetery Trust fund for funding Cemetery care and maintenance. 3. Riverfront Redevelopment Agency. After all other needs have been satisfied; excess surpluses may be transferred to the Riverfront Redevelopment Agency that has been established to provide infrastructure and public facility needs in that area that will result in increased property values. Page 9 of 10 46 of 50 ATTACHMENT "A" City of Sebastian, Florida Financial Policies C. Special Revenue Fund Surpluses Local Option Gas Tax Revenue Fund — A target reserve will be maintained in an amount equal to five percent (5%) of the annual budgeted gas tax receipts to alleviate the impact of a decline in amounts of collected revenue and to provide sufficient funds for unanticipated transportation expenditures. Surpluses projected five years beyond the budget year may exceed the target or be allocated toward additional eligible projects or programs. Discretionary Sales Surtax Revenue Fund — A target reserve will be maintained in an amount equal to five percent (5%) of the annual budgeted sales tax receipts to alleviate the impact of decline in amounts of collected revenue and to provide sufficient funds for unanticipated replacements of eligible capital improvements or equipment. Surpluses projected five years beyond the budget year may exceed the target or also be prograrnned toward additional eligible capital infrastructure, payoff of the outstanding Stormwater Bank Notes or forgiveness of some of the advances made for the construction of Airport Hangars A and B. Community Redevelopment Agency — A target reserve will be maintained in an amount equal to five percent (5%) of the annual budgeted tax increment receipts to alleviate the impact of a decline in amounts of collected revenue and to provide sufficient funds for unanticipated projects or programs. Surpluses projected five years beyond the budget year may exceed the target or also be programmed toward additional eligible projects or programs that may be identified in the future. Parking In -Lieu -Of Fund — Surpluses will be used to fund projects that add vehicle parking facilities or may be held in reserve for projects that may be identified in the future. Recreation Impact Fee Fund — Surpluses will be used toward additional projects to provide additions or improvements to Parks and Recreation facilities or may be held in reserve for projects that may be identified in the future. (Note that impact fee payments must be refunded if not appropriated within seven years). Stormwater Utility Revenue Fund — A target reserve will be maintained in an amount of five percent (5%) of the annual budgeted Stormwater fee receipts for the purpose of alleviating the impact of an unanticipated decline in amounts of collected revenue and to provide sufficient funds for unanticipated capital improvements. Surpluses projected five years beyond the budget year may exceed the target or be programmed toward additional programs or eligible capital projects or be used for paying off the Stormwater Bank Notes. X. Reporting and Analysis To ensure compliance with the adopted financial policies, the Administrative Services Department shall prepare analyses in conjunction with the annual budget process to assist departments/divisions with budget projections. The analyses include the following: ➢ Five -Year Forecast of Revenues and Expenditures — Planning tool used by the Administrative Services Department to forecast and project various funds (General, Local Option Gas Tax, Discretionary Sales Tax, Recreation Impact Fees, Riverfront CRA, Stormwater Utility, Golf Course, Building, and Airport). ➢ Financial Trend Monitoring System — Set of financial trends and ratios used as leading indicators and as a measurement of relative performance. ➢ Revenue Manual — Guide to the major revenue sources that indicates the source, calculation, legal requirements, historical trends and accounting guidelines. Updated annually and included in the annual budget document. ➢ Fund Balance and Reserve Analysis — The City's Administrative Services Director will review the fund balance and reserve levels and produce a report annually on reserve levels as compared to policy goals. Page 10 of 10 47 of 50 CM SE ! T�! 7 HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL FORM COUNCIL MEETING DATE: September 29, 2021 AGENDA ITEM TITLE: Resolution No. R-21-22 Approving the Six -Year Capital Improvement Program for the Fiscal Years 2022-2027 RECOMMENDATION: Move to Approve Resolution No. R-21-22 BACKGROUND: While preparing the Operating Budget for FY 2021-2022, Staff prepared a Six -Year Capital Improvement Program for FY 2022-2027. The, Capital Improvement Program was previously reviewed by the City Council, Planning and Zoning Commission and Citizen's Budget Review Advisory Committee. Plus, the Parks and Recreation Advisory Board was given the opportunity to comment on projects planned for parks and recreation facilities. The Capital Improvement Program is incorporated as a section of the Annual Budget document. It includes long-term projections for General Fund:, Special Revenue and Enterprise Funds in order to forecast the financial feasibility of funding the planned capital expenditures, plus continuing to provide adequate fund balances and reserves. IF AGENDA ITEM REQUIRES EXPENDITURE OF FUNDS: Total Cost: N/A Amount Budgeted in Current FY: N/A Amount of Appropriation Required: None Fund to Be Utilized for Appropriation: NIA ATTACHMENTS: Resolution R-21-22 With Summary of Capital Improvements Attachment. Administrative Services Depart nt Re ' :'--I City Attorney Review: Procurement Division Review, if ap cable: A/ City Manager/Autlprization Date: 48 of 50 RESOLUTION NO. R-21-22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA ADOPTING A SIX -YEAR CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEARS ENDING 2022-2027; PROVIDING REPEAL OF RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR SCRIVENER'S ERRORS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sebastian, Indian River County, Florida finds that it is in the best interest of its citizens and taxpayers to provide for financial planning; and WHEREAS, a detailed capital budget is necessary for the proper annual operation of the City and its desired capital program; and WHEREAS, the Six -Year Capital Improvement Program has been reviewed by the City Council, Citizen's Budget Review Advisory Committee and the City Planning and Zoning Commission; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA as follows: Section 1. A Summary of Capital Purchases and Improvements for Fiscal Years 2022-2027 for the City of Sebastian is attached hereto. Section 2. All Resolutions or parts of Resolutions in conflict herewith are hereby repealed. Section 3. Sections of this resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager, or the City Manager's designee, without need of further action of City Council by filing a corrected copy of same with the City Clerk. Section. 4. This Resolution shall take effect immediately upon its adoption. The foregoing Resolution was moved for adoption by Councilmember . The motion was seconded by Councilmember and, upon being put into a vote, the vote was as follows: Mayor Ed Dodd Councilmember Jim Hill Councilmember Bob McPartlan Councilmember Fred Jones Councilmember Christopher Nunn The Mayor thereupon declared this Resolution duly passed and adopted this 29t" day of September, 2021 CITY OF SEBASTIAN, FLORIDA I: ATTEST: Ed Dodd, Mayor Jeanette Williams, City Clerk Approved as to fonn and legality for the reliance by the City of Sebastian only: Manny Anon, Jr., City Attorney 49 of 50 CITY OF SEBASTIAN, FLORIDA FISCAL YEAR 2022-2027 SUMMARY OF CAPITAL PURCHASES AND IMPROVEMENTS List of Projects FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Totals General Government City Manager Vehicle 32,000 - - - - - 32,000 Vx Rait Lease Payments 43,195 43,195 43,195 '129,585 Email Archive System 60,000 - - - - - 60,000 City Wide Computers 45,000 35,000 45,000 35,000 45,000 35,000 240,000 COSty Equipment 10,000 10,000 10,000 10,000 10,000 10,000 60,000 Network Infrastructure 30,000 30,000 30,000 30,000 30,000 30,000 180,000 Over -the -Air Connections 10,000 20,000 - - - - 30,000 Core and Remote Switches - - 25,000 20,000 - - 45,000 CADIRMS System Update 139,200 60,775 60,775 60,775 60,775 60,775 443,075 Police Department Police Station Sign 7,500 - - - - - 7,500 Police Vehicles 305.000 310.000 315,000 320,000 325,000 330,C00 1,005.000 VehicielBody Cameras 78,583 78,583 78,583 78,583 39,292 - 353,624 Road Patrol Equipment 22,300 23,300 13,000 17,000 13,000 13,000 '101,600 Police COPE Trailer 20,500 - - - - 20,500 Utility Vehicle 18,000 18,000 Operations Equipment 8,000 8,000 Investigations Equipment 11,000 - 11,000 Community Development Harrison Street Park Plaza 225,000 270,000 495,000 Working Waterfront 50,000 - 5C,C00 Tree Protection Plan - 65,000 65,000 CDD Vehicle 33,000 - 33,000 Roads Department Street Repaving - 633,363 313,412 754,747 754,747 754.747 3,211,016 Portable Traffic Analyzers 4,870 - - - - - 4,870 Street Reconstruction - - 355,111 - - - 355,111 Sidewalk Replacement 100,000 100,000 100,000 100,000 100,000 100.000 4500,000 Roads Division Equipment 58,906 - - - - - 58,906 Roads Division Heavy Equipment - 260,000 260,000 Public Facilities Department Public Facilities Compound 5.334,024 - 5,334,024 Stairwell Evacuation Chairs 3,000 3,000 Fleet Division Equipment 7,500 - 7,500 Cemetery Fencing - 17,500 17,500 Cemetery Grounds Improvements - 110,000 - - 110.000 Cemetery Columbarium Niches - - 60,000 60,000 New Cemetery Signage 10,000 - 10,000 Leisure Services Department BSSC Baseball Backstops 75,000 75,000 Refurbish Portable Stage 14,000 - - 14,000 Maintenance Equipment 45,000 80,000 10,000 135.000 Park Signage 30.000 - - 30,000 Parks Division Vehicles 25,000 25,000 25,000 - - - 75,000 Playground Improvements 100,000 - 120.000 50,000 100.000 50,000 420,000 Park Improvements 20,000 20,000 20,000 20,000 20,000 20,000 120.000 Stormwater Department Stormwater Equipment 80,000 - - - - - 80,000 Backhoe and Tractor Attachments 9,500 - - - 9,500 Slip Lining/Pipe Replacement 250.000 120,CC0 130,000 145.000 160,000 175,000 980,000 SwalelDdveway Culverts 115,000 130,000 150,000 130,000 13C,000 130,000 785,000 Stormwater Pond Fountains 13,500 - - - 13,500 Canal Restoration 11,500,000 11,500,000 23,000,000 Concha Dam Replacement 400,000 - - 400,000 Tulip Drive Crossing - 250,000 250,000 Bayfront Road Crossing 250,000 - 250,000 Ocean Cove Drainage - - 350,000 350,000 Golf Course Fund Maintenance Equipment - 5,195 7,50C - 28,100 40,795 Ditch #15 Improvements 20,000 - - 20,000 Golf Course Parking Lot 5,000 5,000 Airport Fund Airport Mobile Radios 7,500 - 7,500 Airport Interior Security Cameras - 24,000 - 24,000 Aircraft Wash Rack - 125.000 '125.000 Hangar C Office Improvements 70,000 - 70,000 Hangar D Office Improvements - - 40D,000 - 400,000 Economic Development Hangar - 1,000,000 - 1,000,000 Construction of Square Hangars 720,000 - - - 720,000 Airport Shade Hangars - 1,100,000 - 1,100,000 Rehab Runway 10-28 Markings 70,000 - - 70,000 Rehab Runway 05123 - 3,044,912 - 3,044,912 Taxiway Alpha Aprons 198,000 - 900,000 1,098,000 Taxiway Golf Apron Design 379,000 - 379,000 Reconstruction of Golf Apron - 1,250,000 1,250,000 Golf Apron Utilities - 400,000 -100,000 Construct Taxiway Golf 1,250,000 1,250,000 Airport Road West 1,800,000 1,1300,000 Building Fund Office Renovations 116,000 - 116.000 Totals $ 20,212,078 $ 14,577,911 $ 7,506,488 $ 7,931,105 $ 2,262,814 $ 1,736,622 $ 54,227,018 50 of 50