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HomeMy WebLinkAbout08-23-2023 CC Minutes2024 Budget and Capital Program August 2023 Update Presentation for City Council August 23, 2023 Prepared By: Ken Killgore Finance Director 1 hk 2024 Budget and Capital Program Update — Priorities Remain Adjust Staffing for Needs and More Efficiency Shorten Time for Completing Projects Catch-Upon Road Improvements Initiate CRA Master Plan Improvements Insure Cash Reserves are Well Funded Continue High Play at Golf Course Continue Airport Improvements/Grants hk 2024 Budget and Capital Program Update — Challenges Remain Stay Competitive w Make Effective Add ith Labor Market itions to Staff Make Changes to Shorten Procurement Time Increases in Cost of Contracts and Purchases Out -of -Control Rise in Insurance Premiums Implementation of Garbage Billing Balancing Stormwater Revenue to Expenses 3 kL 2024 Budget and Capital Program Update — Positives Remain Labor Agreements Commit to 5% Increases Present Cash Reserve Levels are Adequate No Long-term Debt CIP Funded With DST, LOGTJ, ARPA and Grants Escalating Consumer Purchases and Prices Have Also Increased Key Revenue Sources. Historic Increase in Tax Roll Additions Golf Course Play Remains High Airport Construction and Rentals are Robust all hk 2024 Budget and Capital Program Update — Most Solutions Remain Strategic Plan & Changes to Procurement Process Funding for Organizational Efficiency Program Funded Full -Time Positions: Deputy Clerk, Accountant., 2 Police Officers'. Crime Scene/Evidence Technician & Building Inspector (+2 Police Officers in 2025) Funded Part -Time to Full -Time: Evidence Technician, Mechanic and Assistant Golf Pro Will Contract Out Swale Work for Road Work E-sta b 11 *IS: h Gar h R-E.to Self Insure CA ty D .I. 5 2024 Budget and Capital Program Update - - Cautions & Concerns Remain r Current Economy May Be Unsustainable and We Need to Plan for The Potential Effects. ➢ Should Insure Future Cash Reserves Can Be Maintained By Balancing Revenues to Spending. Stormwater Fee Will Need to be Increased Funding Residential Garbage Cost: Will Pay Contractor 100% of Residential Fees Up to 4% Tax Discount + 2% to Tax Assessor + 2% to Tax Collector + Delays in Payment (Franchise Fee?) kk 2024 Budget and Capital Program: Funds Other Than General Fund No Published Updates Have Been Made to the Draft FY2024 Budget and Capital Program Sent in OF July and Posted to the City Website. o An Overview of the Draft FY2024 General Fund Budget Was Presented to City Council Prior to Voting on the Proposed Millage on July 26, 2023. oThe Next Power Point Slides Summarize Budgets for Enterprise and Funds Other than General Fund and the Capital Improvement Program. kk 2024 Budget Enterprise Funds: Golf Course Enjoying Good Year. 2024 Budget Assumes This Continues. Same $30,000 for Restaurant Lease. oSame $106,864 for Airport Rent. 0$36,335 Principal and Interest on $700,000 Building Fund Loan. o$80,000toward General Fund Loans. o Expecting $160,360+ on Sale of Golf Carts During FY20230 2024 Budget Enterprise Funds: Airport Property Rental Revenue Expected to Increase With Rental of Hangar D. OF o Loans From Discretionary Sales Tax Fund: Hangar A $285,000 - $246,523 By 9/30/23. Hangar B $267,511 - $241,058 By 9/30/23. o Grant Matching From DST Fund: In 2024, $314,000 For Square Hangars and $85,191 on 2nd Half of Rehabilitation of Runway 05-23. Over Following Five Years, $1,,644,,640 for Matching on Taxiway Golf, Terminal Apron Expansion,, NW Airport Access and Taxiway Bravo Design. X 2024 Budget Enterprise Funds: Building o Permit Revenues Are Coming In Below Recent Levels and Will Need to be Watched. o Adding an Inspector Position in the Event Needed and Able to Be Hired. o Expecting $36,335 Principal and Interest Payment on Golf Course Loans: $700,000 Loan Will Be $522,610 By 9/30/23. $559,684 Loan To Be Paid After the $700,000. 10 2024 Budget Special Revenue Funds: kk American Rescue Plan Act Fund (ARPA) Originally Allocated to Gardenia Ditch, Schumann Drive, Concha Dam, Employee Retention Payments and Road Work. o Must Be Obligated by December 31, 2024 and Totally Spent by December 31. 2026. u Improvement Projects Need Plans and Permitting Which Require Some Time. n Increased Road Work by Moving Schumann Drive to Discretionary Sales Tax Fund in FY24-25. 11 2024 Budget Special Revenue Funds: Local Option Gas Tax Projecting Collections at 3.5% Annual Increases for Future Years. Being Used for All Road Preservation and Associated Swale Work, as Scheduled in Current Paving Management Program. 12 2024 Budget Special Revenue Funds: Discretionary Sales Tax o Projecting Collections at 3.5% Annual Increases. o Being Used for Road Reconstruction & Swale Work, as Scheduled in the Paving Management Program. u Also Funding: MIS Infrastructure, Police Vehicles and Equipment, A/C Replacements, CRA Projects, Splash Pad Replacement, Schumann Drive, Upstream Stonecrop Work, Canal Restoration and Other Stormwater Projects, Matching Funds for FAA and FDOT Grants at the Airport. 13 hk 2024 Budget Special Revenue Funds: Riverfront CRA Fund Operating Expenditures: Audit Fees., Administration, Landscaping, Waterfront Renovations, Other Facility Maintenance, Submerged Land Leases, Consulting Fees, Travel and Education Cost, Legal Ads,, State Fee, Association Dues and Landfill Fee on Fisherman's Landing. Special Events Moved to General Fund. Working Waterfront Work Thru FY 26-27. Central Avenue Catalyst Site in FY 27-289 14 2024 Budget Special Revenue Funds: Recreation Impact Fee Fund o Unspecified Improvements ($5K per Zone). o Future Playground/Park Improvements: 23-24 Creative Playground. 24-25 Bryant Court Park. 25-26 Hardee Park and Schumann Park. 26-27 Community Center and Friendship Park. 27-28 Riverview Park. o Projected 2024 Fund Balance is $116,667 Provided Revenue Estimates Hold True. 15 hk 2024 Budget Special Revenue Funds: Stormwater Utility Fund Personnel and Operating Accounts Are Exceeding the Revenue From Fees. Capital Only Includes: Walk Behind Concrete Saw. Sliplining or Pipe Replacement. o Expecting a Rate Increase in FY 24-256 16 IL 2024 Budget Special Revenue Funds: Smaller Funds Law Enforcement Forfeiture Fund: Used Only for Unbudgeted Items. Specific Items Need City Council Approval. Current Balance is $521350. o Parking In Lieu Of Fund: Used for Providing Additional Parking. Current Balance is $95,331. 17 2024 Budget Trust Fund: Cemetery Trust Fund Y2of Sales on Operations and Maintenance: cReplacing Mowers, a Truck and Trailer. oReptace Pump and Adding 2nd Well. oAllocation for Grounds Maintenance. oReimbursing $130,000 to General Fund. o %2 of Sales Expendable on Expansions or Cost Incidental to Adding Future Sites: Funds Columbarium Niches in FY 24-25. Capital Improvement Program 2024 to 2029 Summary o $59.7 Million Over 6 Years. o $20.8 Million Next Fiscal Year. o Largest Items for Next Fiscal Year: $ 5331423 117801163 a 1115001000 a 115701000 • 1,703,823 $1710871409 Street Repaving. Street Reconstruction. Canal Restoration (2nd Part). Construct Square Hangars. Runway 05-23 (2nd Part). Total of Largest Items 0$13,874,632 Funded by Grants — 81.2%6 19 2024 Budget and Capital Program kk Update —Actions Since Initial Draft Strategic Planning Funds Moved to This Year. Senior Center Roofing Moved to This Year. Firearms Range Moved Out to FY25-26. Removed Self -Insuring Dock With Reserves and Replaced With Annual Premiums. Added $101000 Per Year for Undefined Sustainable Sebastian Programs. 20 2024 Budget and Capital Program Update —Actions Since Initial Draft Initial General Fund Draft Budget Balanced at 3.0503 Millage (5% Above Last Year's 2.9050). City Council Adopted Proposed Millage of 3.1955 (10% Above 2.9050) for Pay Changes That Address Competitive Wage Needs. Staff is Currently Vetting Possible Approaches. 21 2024 Budget and Capital Program IL Update — Final Note and Questions A Millage Below 3.1955 Will Require: Reductions to Expenditures (Employee Positions, Operating Accounts or Capital Items). Deferral of "Competitive Wage Adjustments". The Undesirable Use of Cash Reserves. For Millage of 3.0503 - $290,714 From Above. For Millage of 2.9050 - $581,,429 From Above. 22 2024 Budget and Capital Program Update — Final Note and Questions Questions to Staff By City Council? Directions to Staff By City Council? 23