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Home My WebLink About09202006 Special CRY OF HOME OF PELICAN ISLAND AGENDA SEBASTIAN CITY COUNCIL SPECIAL MEETING WEDNESDAY, SEPTEMBER 20,2006 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA PURPOSE: FINAL PUBLIC HEARING AND ADOPTION OF MILLAGE AND FY 2006-2007 BUDGET 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL FINAL PUBLIC HEARING AND ADOPTION - MILLAGE AND FY 2006/2007 BUDGET 06.100 4. A. PUBLIC INPUT ON FY 2006/2007 BUDGET B. COUNCIL DELIBERATION AND AMENDMENT OF ADOPTED TENTATIVE BUDGET IF NECESSARY C. PUBLIC ANNOUNCEMENT OF MILLAGE TO BE LEVIED - 3.0519 MILLS 1-5 D. ADOPT RESOLUTION NO. R-06-21 - Millaae Rate for Calendar Year 2006 - (Finance Transmittal. DR 420 Certification of Taxable Value, R-06-21 ) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A MILLAGE RATE OF 3.0519 MILLS FOR THE CALENDAR YEAR 2006; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. 7-16 E. ADOPT RESOLUTION NO. R-06-22 - Final Adoption of Fiscal Year 2006/2007 Budaet - Final Public Hearing and Final Adoption (Finance Transmittal. R-06-22. Schedule A) 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, 2006 AND ENDING SEPTEMBER 30, 2007; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS OF THE BOND AND OTHER INDEBTEDNESS OF THE CITY IN THE CITY'S GENERAL FUND. SPECIAL REVENUE FUNDS, DEBT SERVICE FUND, CAPITAL IMPROVEMENT FUNDS, GOLF COURSE FUND, AND 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; AND PROVIDING FOR AN EFFECTIVE DATE. 5. OTHER FISCAL MATTERS 17-29 A. ADOPT RESOLUTION NO. R-06-20 - ADOPTING MODIFIED FINANCIAL POLICIES (Finance Transmittal. R-06-20. Attachment) A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, ADOPTING AMENDED FINANCIAL POLICIES GOVERNING VARIOUS AREAS OF BUDGET AND FINANCE AS PROVIDED FOR IN ATTACHMENT "1"; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. 6. ADJOURN HEARING ASSISTANCE HEADPHONES ARE AVAILABLE IN THE COUNCIL CHAMBERS FOR ALL GOVERNMENT MEETINGS. Regular City Council Meetings are Scheduled for Live Broadcast on Comcast Channel 25 ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MA TTER CONSIDERED A T THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MA Y NEED TO ENSURE THAT A VERBA TIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (286.0105 F.S.) IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. 2 HOME. OF PWCAN ISlAND 'ttal by: City Manager City of Sebastian, Florida Agenda No. 1J(P .1 () 0 Department Origin: ~t-#'4.. ~- CIty Attorney: ~.".. . ~ City Clerk: ---.;. t1/fvo.-~ <;.Ir'/ Date Submitted: September 11, 2006 Subject: Resolution No. R-06-21 Adoption of Millage Rate for Calendar Year 2006. ' For Agenda of: September 20, 2006 Exhibits: ~ Resolution No. R-06-21 ~ Copy of DR 420 Certification of Taxable Value EXPENDITURE AMOUNT BUDGETED: REQUIRED: N/A N/A APPROPRIATION REQUIRED: N/A SUMMARY In accordance with Florida Statute 200.065 (7)(a.)(1.), a proposed millage tax rate for calendar year 2006 and for the budget year beginning October 1, 2006 and ending September 30, 2007, was adopted by City Council on September 7, 2006. The tentatively adopted millage tax rate of THREE POINT ZERO FNE ONE NINE (3.0519) MILLS is 0% greater than the "rolled-back" tax rate of 3.0519 mills and will provide sufficient operating revenue for the proposed budget for fiscal year 2006/2007. There have been no changes from the tentatively adopted millage tax rate to the final millage rate presented to the Council tonight for final adoption. RECOMMENDED ACTION Move to adopt Resolution R-06-21 establishing the millage tax rate of 3.0519 mills for calendar year 2006. / .', l \ \ J (2-, '---........ RESOLUTION NO. R-06-21 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A MILLAGE RATE OF 3.0519 MILLS FOR THE CALENDAR YEAR 2006 AND ALLOCATING SAME TO THE FISCAL YEAR BEGINNING OCTOBER 1, 2006 AND ENDING SEPTEMBER 30, 2007; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. NOW THEREFORE, BE IT RESOL YED 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 FIVE ONE NINE (3.0519) MILLS against all real and tangible personal property for the calendar year (January 1, 2006 through December 31, 2006) 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, 2006 and ending September 30,2007. Section 2. ROLLED-BACK RATE. The tax rate established in Section 1. is 0% higher than the computed "rolled-back" tax rate of 3.0519 mills. Section 3. CONFLICT. All resolutions or parts of resolutions in conflict herewith are hereby repealed. 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 into a vote, the vote was as follows: Mayor Brian Burkeen Councilmember Nathan McCollum Councilmember Andrea Coy Councilmember Sal Neglia Councilmember Al Paternoster and, upon being put /3 L @ The Mayor thereupon declared this Resolution duly passed and adopted this 20th day of September 2006. CITY OF SEBASTIAN, FLORIDA By: Brian Burkeen, Mayor ATTEST: Sally A. Maio, MMC City Clerk Approved as to form and legality for the reliance by the City of Sebastian only: Rich Stringer, City Attorney J \"cnllrl\"J-\IIUI'i ur IJVVU:)LI::VJ-\LUI:: DR-420 R. 01/95 SECTION I 2006 Year County To: , CITY OF SEBASTIAN {Name of Taxing Authority) .1,501,646,713 ,53; 135,529 , , " ,', 949;661 1,555,731 ;903 95,329,297 1 2 3 4 5 (M"".'''''.''... J"ne ... ;20Q8~'. . ',. .... ..'.,.i..."~..,:..,..,....:~~~ "......:~~... . Signature of Prop~rty ApprCiiser.. ., .. .. . TAXING AUTHo~rrx; If thisllortlon of the fOrm Is.;ot compietedin Fl!LLyour Authority will be deni.ed TRIJ\II c!'!rtifil;ation :.. and ,possibly lose its millage levy privilege for the taxyear; If .lIiy linl!is inapplicable, enterN1A pr.,o~.' . SECTION 11"" . . ... . 14. Cl,lrrent Year Miliae Lei ..,. for ," .:; VOTED DEBT SERVICE .. 15 Curr~nfYearMi"a. e Lefor ...,;<\,OTHERVOi"EDMlLLAGE.,.. I DEPENDENT SPECIAL DISTRICTS SKIP U~eS(16) through (22). . .' -.., . . '. ". . .;. I 225.. Mailing Address ..' ,.. ", SebastiariFlorida . . -.' .' ". ,. ..... ". ,-'- . -. '. .' . State ". .122S:Ma:iri',St. .S~~st:ian, . Address of Physical Location. ..Shcrl>,Fia:Ocis Name of CODti:!ct Person" ,(772)38~~$,205.,. .... .,(772}388-'8249., Zip.. " ., . ' Phone # . See Instructions ,on Reverse Side. ' ......,(i).............'.....'s.....,......'....' ..' : . ...... . . . .".. . GJ ClIYOF HOME Of PELICAN ISLAND Cit of Sebastian, Florida mittal by: City Manager Agenda No. 0(0 ' I D 0 D~partment Origin: Fi~nanc, ;h--- CIty Attorney: __ City Clerk: Subject: Resolution R-06-22 Adoption of a Budget for Fiscal Year 200612007 ., Date Submitted: September 11, 2006 For Agenda of: September 20, 2006 Exhibits: . Resolution R-06-22 . Schedule "A" . Exhibit "B" - Revised FY 2006-07 Proposed Budget Page 137 EXPENDITURE AMOUNT BUDGETED: APPROPRIATION REQUIRED: N/ A N/A REQUIRED: N/A SUMMARY In accordance with Florida Statute 200.065, a tentative budget for fiscal year 200612007, beginning October 1, 2006 and ending September 30, 2007, was presented to the City Council on September 7, 2006. The tentative budget was adopted by the City Council with two revisions, which do not increase or decrease the total adopted tentative budget. The revisions are as following: 1. Reallocate the capital project "Mooring Field" funding of $20,000 to capital project "Dog Park". The revised page is presented as Exhibit "B". 2. Increase School Crossing Guard hourly rate from $7.00 to $12.00 with an effective date of October 1, 2006. Staff estimates the additional funding requirement is $12,320 per year. The adjustment will be included in the FY 2006-07 first quarter budget amendment for Council's approval. There have been no other changes from the tentatively approved budget to the final budget presented to the Council tonight for final adoption. RECOMMENDED ACTION Move to adopt Resolution R-06-22 establishing the budget for fiscal year 200612007. G) cL RESOLUTION NO. R-06-22 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, 2006 AND ENDING SEPTEMBER 30, 2007; MAKING APPROPRIATIONS FOR THE PAYMENT OF OPERATING EXPENSES, CAPITAL EXPENSES, AND FOR THE PRINCIPAL AND INTEREST PAYMENTS ON THE BOND AND OTHER 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, ESTABLISIDNG AUTHORITY OF THE CITY MANAGER TO IMPLEMENT THE BUDGET; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; 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, 2006, and ending September 30, 2007; and WHEREAS, on September 7, and September 20, 2006, the City Council conducted Public Hearings on the Proposed 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 Budget is hereby adopted for the Fiscal Year beginning October 1, 2006 and ending September 30, 2007. 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 Progr~ projects, and expenditures authorized by the City Council. All other budgetary adjustments will require prior 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. Section 6. All Resolutions or parts of Resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 7. This Resolution shall become effective October 1, 2006. 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 Brian Burkeen Councilmember Nathan McCollum Councilmember Andrea Coy Councilmember Sal Neglia Councilmember Al Paternoster The Mayor thereupon declared this Resolution duly passed and adopted this 20th day of September, 2006 CITY OF SEBASTIAN, FLORIDA By: ATTEST: Brian Burkeen, Mayor Sally A. Maio, MMC City Clerk Approved as to form and legality for the reliance by the City of Sebastian only: Rich Stringer, City Attorney @ GENERAL FUND REVENUES: 001501 001501 001501 001501 001501 001501 001501 001501 EXPENDITURES: 010001 010005 010009 010010 010020 010021 010035 010040 010041 . 010042 010043 010044 010046 010047 010048 010049 010051 010053 010052 010054 010056 010057 010059 010080 010045 010099 A TTACHMENT TO RESOLUTION R-06-22 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2006/2007 Taxes and franchise fees Licenses and permits Intergovernmental Charges for services Fines and forfeits Miscellaneous Transfers in Restricted cash balance carryforward Total Revenues $ 7 ,681,502 231,200 2,380,000 441,342 55,900 397,562 736,192 398,480 $ 12,322,178 $ 42,608 230,467 340,565 213,234 358,552 235,069 228,567 368,105 246,179 149,964 2,120,055 154,140 124,474 575,868 313,865 457,765 550,671 1,405,316 856,381 220,397 167,515 1,057,256 166,824 385,964 176,759 1,175,618 $ 12,322,178 City Council City Manager City Clerk City Attorney Finance Management Information System Human Resources Police Special Operations Police Administration Police School Resource Police Patrol Division Community Policing Unit Professional Standards Police Detective Division Police Support Services Police Dispatch Unit Engineering Stormwater Utility Roads and Maintenance Garage Building Maintenance Parks and Recreation Cemetery Growth Management Code Enforcement Division Non-departmental Total Expenditures @ ATTACHMENT TO RESOLUTION R-06-22 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2006/2007 SPECIAL REVENUE FUNDS 120010 120051 130010 130051 160010 160051 163010 163051 @ LOCAL OPTION GAS TAX FUND REVENUES Taxes Miscellaneous Total Revenues EXPENDITURES Operating Debt service Transfers out Total Expenditures DISCRETIONARY SALES TAX FUND REVENUES Taxes Miscellaneous Total Revenues EXPENDITURES Transfers out Total Expenditures RECREATION IMPACT FEE FUND REVENUES Impact fee Miscellaneous Total Revenues EXPENDITURES Transfers out Non-operating Total Expenditures STORMW A TER UTILITY FUND REVENUES Stonnwater utility fee Miscellaneous Restricted cash balance carryforward Total Revenues EXPENDITURES Operating Transfers out Total Expenditures 2 $ 720,000 45,000 $ 765,000 $ 202,429 300,000 262,571 $ 765,000 $ 3,127,000 113,300 $ 3,240,300 $ 3,240,300 $ 3,240,300 $ 360,000 45,000 $ 405,000 $ 70,000 335,000 $ 405,000 820,000 86,200 392,476 $ 1,298,676 $ 3,500 1,295,176 $ 1,298,676 ATTACHMENT TO RESOLUTION R-06-22 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2006/2007 SPECIAL REVENUE FUNDS - CONTINUED LA W ENFORCEMENT FORFEITURE FUND 190010 ~VENUES Fines and forfeits Miscellaneous Total Revenues 190051 191010 191051 $ 8,000 3,500 11,500 EXPENDITURES Operating Total Expenditures $ $ 11 ,500 11,500 G.R.E.A.T. PROGRAM FUND ~VENUES Intergovernmental Revenue Total Revenues $ 10,000 10,000 EXPENDITURES Operating Total Expenditures $ $ 10,000 10,000 DEBT SERVICE FUNDS 230010 230051 263010 263051 DISC~TIONARY SALES SURTAX REVENUE BONDS REVENUES Miscellaneous Transfers in Total Revenues 1,975 1,033,207 $ 1,035,182 $ 300 $ 1,034,882 $ 1,035,182 EXPENDITU~S Operating Debt service Total Expenditures STORMW A TER UTILITY ~VENUE BONDS REVENUES Miscellaneous Transfers in Total Revenues $ 875 437,273 438,148 EXPENDITURES Debt service Total Expenditures $ $ 438,148 438,148 3 @ ATTACHMENT TO RESOLUTION R-06-22 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2006/2007 CAPITAL PROJECTS FUNDS REVENUES Transfer from Local Option Gas Tax Fund Transfer from Discretionary Sales Tax fund Transfer from Recreation Impact Fee Fund Transfer from Stormwater Utility Fund Transfer from Airport Operating Fund Grants Total Revenues EXPENDITURES Roads projects Recreation facilities projects Stormwater ImprovementsJPhysical Environment Public Safety Debt service Total Expenditures GOLF COURSE FUND 410010 REVENUES: Charges for services Miscellaneous revenues Total Revenues 410110 410120 410120 410130 @ EXPENSES: GOLF COURSE ADMINISTRATION Personal services Operating expenses Debt service Total Administration GOLF COURSE GREEN DIVISION Operating expenses Capital Outlay Total Golf Course Green Division GOLF COURSE CARTS DIVISION Personal services Operating expenses Total Golf Course Carts Division Total Golf Course Expenses 4 262,571 1,934,293 70,000 436,557 37,500 2,292,500 $ 5,033,421 2,912,571 1,081,156 800,000 85,000 $ 154,694 $ 5,033,421 $ 1,594,510 39,725 1,634,235 $ $ 316,997 332,051 301,990 $ 951,038 561,300 15,000 $ 576,300 52,047 54,850 $ 106,897 $ 1,634,235 ATTACHMENT TO RESOLUTION R-06-22 SCHEDULE "A" BUDGETSUMl\1ARY FISCAL YEAR 2006/2007 AIRPORT FUND 450010 REVE~S Charges for services Miscellaneous revenues Total Revenues 450110 EXPENSES: Personal services Operating expenses ContingencylReserve Total Expenses BUILDING DEPARTMENT 480010 REVENUES Charges for services Miscellaneous revenues Total Revenues 480110 EXPENSES: Personal services Operating expenses Capital outlay ContingencylReserve Total Expenses TOTAL BUDGET SUMl\1ARY GENERAL FUND SPECIAL REVE~ FUNDS DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS ENTERPRISE FUNDS TOTAL BUDGET FOR ALL FUNDS 5 $ 390,647 5,588 $ 396,235 $ 228,839 129,896 37,500 $ 396,235 $ 1,056,400 46,672 $ 1,103,072 $ 649,348 410,071 22,790 20,863 $ 1,103,072 $ 12,322,178 5,730,476 1,473,330 5,033,421 3,133,542 $ 27,692,947 @ CITY OF SEBASTIAN, FLORIDA 2006/2007 ANNUAL BUDGET Department/Proiect Police Department E911 System Parks & Recreation Hardee Park Improvement Schumann Park Racquetball !Basketball Courts Dog Park Community Center Phase I - Design and Planning Stormwater 1/4 Round Swale Rehab Engineering Barber St. Realignment Easy St. Renovation SidewalklBike Paths Street Repaving Aiport Construct Taxiway C Debt Service Equipment Lease Total (0 EXHIBIT "B" CAPITAL IMPROVEMENT PROGRAM BY PROJECT AND FUNDING SOURCE Local Option Gas Tax Recreation Stormwater Impact Utility DST Fees Fund Airport Grants Total $ 85,000 $ 85,000 $ 50,000 $ 50,000 $ 80,000 $ 80,000 $ 20,000 $ 20.000 $ 931,156 $ 931,156 $ 363,443 $ 436,557 $ 800,000 $ 400,000 $ 400,000 $ 750,000 $ 750,000 $ 150,000 $ 150,000 $ 112,571 $ 112.571 $ 37,500 $ 1,462,500 $ 1,500,000 $ 154,694 $ 154,694 $ 262,571 $ 1,934,293 $ 70,000 $ 436,557 $ 37,500 $ 2,292,500 S 5,033,421 137 cnY OF HOME OF PELICAN ISlAND Cit of Sebastian, Florida ,. Agenda No. 00; lLLS D~partment Origin: F~i. e ~ CIty Attorney: ~_~ City Clerk: ~; Subject: Resolution No. R-06-20 Readopting Amended Financial Policies Date Submitted: September 11, 2006 For Agenda of: September 20, 2006 Exhibits: · Resolution R-06-20 Readopting Financial Policies Governing Various Areas of Budget and Finance. · Attachment "I" - Financial Policies EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A APPROPRIATION REQUIRED: N/A SUMMARY Pursuant to City of Sebastian Resolution 03-23, the financial policy shall be readopted annually. Due to the unforeseen natural disaster impact to the City, staff recommends to increase the General Fund working capital reserve from the current 15% to 25% of the total General Fund operating expenditures budget. The 25% working capital reserve will provide the City with approximately 90 days worth of funding for general operations in case of disasters. RECOMMENDED ACTION Move to adopt Resolution R-06-20. 0-~ ~~ @ RESOLUTION NO. R-06-20 A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, READOPTING AMENDED FINANCIAL POLICIES GOVERNING VARIOUS AREAS OF BUDGET AND FINANCE AS PROVIDED FOR IN ATTACHMENT "1"; PROVIDING FOR CONFLICTS; 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. READOPTING AMENDED FINANCIAL POLICIES: The City Coup.cil of the City of Sebastian hereby readopts amended Financial Policies governing the Operating Budget, Financial Reserves, Use of Surplus, Performance Measurement, Capital Improvement Program, Debt Management, Revenue, and Investment. SECTION 2. All resolutions or parts of resolutions in conflict herewith are hereby repealed. SECTION 3. 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 Brian Burkeen Councilmember Nathan McCollum Councilmember Andrea Coy Councilmember Sal Neglia Councilmember Al Paternoster The Mayor thereupon declared this Resolution duly passed and adopted this 20th day of September, 2006. r;c~~ ~0 ATTEST: Sally A. Maio, MMC City Clerk o CITY OF SEBASTIAN, FLORIDA By: Brian Burkeen, Mayor Approved as to Form and Legality for Reliance by the City of Sebastian Only: By: Rich Stringer, City Attorney Attachment "1" City of Sebastian, Florida Financial Policies City of Sebastian's [mancial policies set forth the basic framework for overall fiscal planning and management and set forth guidelines for bbth current activities and long-range planning. These policies are reviewed annually to assure the highest standards of fiscal management. The City Manager and the Management Team has the primary role of reviewing [mancial actions and providing guidance on [mancial issues to the City Council. Overall Goals The overall financial goals underlying these policies are: 1. Fiscal Conservatism: To ensure that 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. Comply 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 [mancial reporting and budgeting, the Government Accounting Standards Board and other professional standards. Operating Budget Policies The Finance Department, with support and direction from the Office of the City Manager, coordinates the budget process. The formal budgeting process, which begins in February and ends in September, 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. Budget Process The development of the budget is guided by the following budget policies: 1. The budget must be balanced for all funds. Total anticipated revenues must equal total estimated expenditures for each fund (Section 166.241 of Florida Statutes requires that all budgets be balanced). 2. All operating funds are subject to the annual budget process and reflected in the budget document. 3. The enterprise operations of the city are to be self-supporting; i.e., current revenues will cover current expenditures, including debt service. 4. An administrative service fee will be assessed by the General Fund against all enterprise funds of the city. This assessment will be calculated based upon a percentage (number of full-time equivalent employees of the enterprise fund/total number of full-time equivalent employees of the city) of total General Fund administration expenditures budget (includes City Council, City Manager, City Attorney, City Clerk, Finance, Growth Management, and Human Resources) and will be used to reimburse the General Fund forb administrative and support services provided to these funds. \ ~ \ ) 1 ., ~ Attachment "1" City of Sebastian, Florida Financial Policies 5. A 2.5 percent administrative service fee will be assessed by the General Fund against the Community Redevelopment Agency (CRA) Fund of the city. This assessment will be based on the total tax increment revenue estimate of the CRA Fund and will be used to reimburse the General Fund for the administrative support services provided to the CRA fund. 6. Pursuant to Ordinance 05-16, stormwater utility fees can be utilized to fund the General Fund stormwater operation. The amount being utilized should be approved by the city council through the budget process. 7. 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 millage limitation on all Florida municipalities.) 8. The city will budget 95 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.) 9. The city will coordinate development of the capital improvement budget with the development of the annual operating budget. Each capital improvement budget is reviewed for its impact on the operating budget in terms of revenue generation, additional personnel required and additional operating expenses. 10. A budget calendar will be designed each year to provide a framework within which the interactiOlis necessary to formulate a sound budget could occur. At the same time, it will ensure that the city will comply with all applicable State legal mandates. Basis of Budgeting The basis of budgeting for General, Special Revenue, and Debt Service Funds shall be prepared on a modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized only when they become measurable and available to finance expenditures of the fiscal period. Expenditures are recognized when the fund liability is incurred except for unmatured interest on general long-term debt which is recognized when due, and the non-current portion of accrued fringe benefits (vacation and sick leave) which is recorded as a long-term liability in the Statement of Net Assets in the Comprehensive Annual Financial Report. The budgets for the Proprietary funds - Golf Course, Airport and Building Department - are prepared using the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when the liability is incurred. Revenues are recognized when they are obligated to the City (e.g., Airport leases). The differences between the budget basis and the accrual basis of accounting include: (1) budgeting the full amount of capital expenditures as expense rather than depreciating them and (2) presenting debt service, including principal as an expense. 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) (i.e., a statement of net assets and statement of activities are presented on an accrual basis of accounting, including governmental funds, major governmental and proprietary funds are identified, governmental funds use the modified accrual basis of accounting, while the proprietary and trust funds use the accrual basis of accounting.) In order to provide a meaningful comparison of actual results to the fmal budget, the CAFR presents the City's operations on a GAAP basis and also shows fund @revenue and expenditures on a budget basis for the General, Special Revenue, and Debt Service funds. Z 2 )Current revenues shall be sufficient to support current expenditures. The finance department will monitor each budgeted fund and make timely budgetary recommendations and adjustments to make sure no budgetary expenditures are in excess of appropriations at fiscal year end, which is not pennitted under Florida State Statutes. 2 Attachment "1" City of Sebastian, Florida Financial Policies The budget process and format shall be performance-based and focused on goals, objectives, programs, and performance indicators. The budget will provide adequate funding for maintenance and replacement of capital plant and equipment. Budget Amendment 1. Total fund appropriations changes must be approved by the City Council. 2. Uses of contingency appropriations must be specifically approved by the City Council. 3. 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 the item prompting the change will usually go to the City Council (e.g., award of contract, addition of staff, contract change order). Procedures for appropriation transfers and delegation of budget responsibility will be set by the City manager. 4. 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 City Council comparing actual versus budgeted revenue and expense activity for all budgeted funds. Planning The City will annually prepare and distribute to departments and the City Council a Five-Year Forecast. The forecast will include estimated operating costs and revenues for future capital improvements, such as new parks and public works facilities, included in the capital budget. Fund Balance Policies On an annual basis, after the year-end audit has been completed, but no later than April 1, the City Finance Director shall produce a schedule of all fund surpluses and deficits, with projections of reserve requirements and a plan for the use of any excess surplus for the current year in accordance with the Financial Balance Policies and Use of Surplus Policies. This document will be used not only 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 Director of Finance shall provide recommended changes to the City Council for any changes to the Fund Balance Policies and Use of Surplus Policies based on needs identified in this analysis. Working Capital The General Fund unappropriated fund balance will be maintained in an amount greater than or equal to Hfteefl percent (15%) twenty-five percent (25%) of the annual General Fund Expenditures budget. This amount approximates twe three months or @ 90 days of working capital. The City shall include in the General Fund operating budget annually, an Operating Contingency Account equal to 1.5% of the General Fund total expenditures, less debt service, interfund transfers and capital expenditures. This contingency will be used for unforeseen and emergency events that occur during the course of the operating year and will expire at the end of each fiscal year and balances will not be brought forward. In order to provide the resources necessary to ensure continued operations of the City's programs should a natural disaster or significant changes in the weather pattern occur, the City shall maintain a reserve of $350,000 for emergency serVIces. The City shall maintain a reserve of $100,000 for Property and Casualty claims representing claim deductibles. All retirement programs, Police Pension, CW AJITU and 401 a programs will be funded at 100% of the obligations calculated annually. The defined benefit pension plan will be funded in accordance with an independent actur'-'. analysis performed at a minimum of every two years, or: needed. l~ Attachment "1" City of Sebastian, Florida Financial Policies Capital Reserves The City shall include in the General Fund operating budget annually a Capital Contingency Account equal to 0.5% of the General Fund total expenditures, less debt service, interfund transfers and capital expenditures. This contingency will be used for unanticipated expenditures for the maintenance of buildings and replacement of related equipment and will expire at the end of each fiscal year and balances will not be brought forward. Annually the City shall transfer fifty percent (50%) ofthe current year's operating surplus (revenues in excess of expenditures) into a capital equipment replacement reserve for the purpose of creating a perpetual funding method for replacing City capital equipment. Prior to any funds being spent, the budget amendment procedure must be followed. The City shall maintain a reserve of $1,000,000 for the purpose of providing advances to the airport for capital improvements pursuant to a resolution establishing this loan reserve. The line of credit reserve shall have a term not to exceed five (5) years. The term expires September 30, 2007. The table listed blow is a summary of all reserve and contingency requirements for the General Fund. tion General Fund Advance to Airport Capital Pro' ects Reserve General Fund Operating Contingency (for bud et ose onl ) Capital Contingency (for budget purpose only) All retirement programs 1.5% of the General Fund total expenditures budget, less debt service, interfund transfers and ca ital ex enditures 0.5% of the General Fund total expenditures budget, less debt service, interfund transfers and ca ital ex enditures 100% Funded per independent actuarial analysis performed at a minimum of eve two ears, or as needed Use of Surplus Policies Use of Surpluses It is the intent of the City to use all surpluses generated to accomplish three goals: meeting reserve policies, avoidance of future debt, and reduction of outstanding debt. The City will not use existing fund balances or year- end surpluses to fund ongoing operating expenses. Any surpluses realized in the General Fund at year-end shall be used first to meet reserve policies as set forth in the Fund Balance Policies. Excess surplus will then be used for the following purposes, listed in order of priority: ~ Capital Replacement Programs. After General Fund reserves have been met, up to 50% of excess reserves may be set aside to provide the cash necessary to implement capital replacement-programs (e.g., vehicle and equipment replacement and facility maintenance programs). Any excess surplus remaining should be carried forward to the next fiscal year. ~ Cash Payments for Capital Improvement Program Projects. Using cash to purchase capital items that are budgeted to be purchased with the proceeds from any debt will reduce the future debt burden of the City. This strategy may be combined with retirement to reduce future debt service after performing a [mancial analysis to determine 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 that has been established to care for the Cemetery. The . Z LI amounts transferred shall be deemed corpus to the Cemetery Trust fund for future earnings growth to fund . Cemetery care and maintenance. 4 Attachment "1" City of Sebastian, Florida Financial Policies ~ 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. Special Revenue Fund Surpluses Local Option Gas Tax Revenue Fund - A reserve will be maintained in an amount greater than or equal to fifteen percent (15%) of the annual Local Option Gas Tax Fund -Expenditures budget. Excess surpluses shall first be used for the purpose of reducing debt for the Road Paving Note Payable. Discretionary Sales Surtax Revenue Fund - A reserve will be maintained in an amount greater than or equal to ten percent (10%) of the total annual Discretionary Sales Tax Fund Expenditures budget for the purpose of providing sufficient funds for unanticipated major repairs or replacements for eligible capital improvements or equipment. Discretionary Sales Tax revenues will be used in accordance with the following: 1. fund annual debt service payments for which this revenue source is pledged, then; 2. fund emergency vehicles, then; 3. fund pay-as-you go eligible capital improvements, then; 4. fund equipment for the maintenance of Discretionary Sales Tax funded improvements. Stormwater Utility Revenue Fund - A reserve will be maintained in an amount greater than or equal to fifteen percent (15%) of the total annual Stormwater Utility Revenue Fund Expenditures budget for the purpose of providing sufficient funds for unanticipated major capital improvement program. (Pursuant to City of Sebastian Ordinance No. 0-04-15, capital improvement program of the Comprehensive Growth Management Plan on furtherance of the Stormwater Master Plan adopted by the City Council.) Performance Measurement Policies Establishing Performance Requirements Every two years, the City shall update the existing Strategic Plan that identifies Strategic Priorities for the following two years. Each Strategic Priority should provide three to five Key Intended Outcomes (KIOs) that measure appropriate results for each priority. 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 performance measures for each program within their department to monitor and project program performance. These objectives must be linked to the departmental measures they support. Supervisors shall insure that fair, objective and aggressive performance measures for each employee that directly supports program objectives and departmental measures are part of their annual review. 5 @ Reporting Performance Attachment "1" City of Sebastian, Florida Financial Policies Quarterly summaries of progress on goals and objectives and departmental performance measures will be provided to the City Manager for publishing in the Council's Quarterly Budget to Actual Report. 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., Budget Review Committee) are teams made up of Residents and City staffto address specific concerns and provide direction and feedback. Several such advisory boards currently exist; .:. Master Planning - Specific functions and processes are included in written plans, such as the Comprehensive Plan, Stormwater 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, OwnlLease Analysis, and Return on Investment (ROI) Analysis; .:. Five-Year Financial Plan - Multi-year forecasting of revenues and expenditures; .:. Ten-Year Fleet Replacement Program - Equipment replacement covering the useful life of all vehicle classes; .:. Ten-Year Equipment and Maintenance Program - maintenance and replacement schedule covering the useful life of all equipment, other than vehicles; .:. Financial Trend Monitoring System - Systematic analysis of major financial indicators; Capital Improvement Program Policies Definition Capital improvements include streets, buildings, building improvements, new parks, park expansions/improvements, airport runways, infrastructure improvements, and major, one-time acquisitions of equipment. Projects in the Capital Improvement Program generally cost more than $50,000 and last at least five years. Alignment The City shall coordinate the development of the Capital Improvement Program budget with the development of the Strategic Plan and 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 Five-Year Forecasts. Project Selection All capital projects submitted for approval must be justified in terms of how the project supports the achievement of the City's Strategic Priorities. 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). Capital Improvement Budget The City shall adopt an annual Capital Budget based on the Capital Improvement Program. Future capital improvement expenditures necessitated by changes in population, real estate development, or in economic base @ll be calculated and included iu the capital ;mproveme:t budget projections. Attachment "1" City of Sebastian, Florida Financial Policies The originating department of the capital improvement project will identify the estimated costs and funding sources for each capital project proposal before it is submitted to the City Council for approval. The City shall make all capital improvements in accordance with an adopted Capital Improvement Program budget. 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 Equipment Outlay DefInition Capital equipment outlay is defIned as capital assets purchased and/or constructed with a cost equal to or greater than $750 (with the exception of computer software cost which is equal to or greater than $5,000) with a useful life of one or more years The City will determine and use the most prudent fmancial methods for acquisition of new or replacement capital equipment, based upon market conditions at the time of acquisition. Capital Replacement Programs - The City shall establish equipment replacement and maintenance needs for at least a fIve-year period and will update this projection each year. From this projection, a maintenance and replacement schedule shall be developed and implemented. Funding should be obtained through year-end surpluses as identifIed in the Use of Surplus Policies. Maintenance programs shall be paid for on a pay-as-you-go basis. Maintenance The City shall maintain all capital assets at a level adequate to protect the City's capital investment to minimize future maintenance and replacement costs. Physical Inventory An annual physical inventory (see Fixed Asset Policies) will be conducted to ensure that all capital assets listed in the City's fmancial system are accounted for, and that suffIcient internal control over capital items is exercised. See Fixed Asset Policies for further information on capital purchases. Debt Management Policies Market Review The City, in conjunction with its 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 three percent (3%) over the life of the respective issue, at a minimum, must be attainable. Capital Improvements, equipment and facility projects shall be classified into "pay-as-you-go" and "debt fInancing" classifIcations. Pay-as-you-go capital items will be $150,000 or less with lives of ten years or less. Debt fInancing will only be used for major,_non-recurring items with a minimum of ten (10) years useful life. Debt Financing for Capital Assets 1. Short-term Borrowing Short-term borrowing or lease/purchase contracts should be considered for financing major operating capital equipment when the Finance Director, along with the City's financial advisor, determines that this is the City's best financial interest. Lease/purchase decisions should have the concurrence O~g appropriate department/division head. L 1 7 Attachment "1" City of Sebastian, Florida Financial Policies 2. Issuance of Debt When the City finances capital projects by issuing bonds, it shall amortize the debt over a term not to exceed the average useful life of the project(s) fmanced. If General Obligation Bonds are issued, the City's goal will be to limit the maturity to fifteen (15) years. The City shall confine long-term borrowing to capital improvements and projects that have useful lives in excess of twenty (20) years. When possible, the City shall use a special assessment or self-supporting fmancing instead of general obligation bonds, so those benefiting from the improvements will bear all or part of the cost of the project fmanced. 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. Bond Ratings The City, along with its Financial Advisor, shall periodically review possible actions to maintain or improve its bond ratings by various rating agencies. The City shall maintain good communications with bond rating agencies and its bond insurers about its financial condition. The City shall follow a policy of "full disclosure" in its Comprehensive Annual Financial Report and bond prospectuses. Revenue Policies 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 anyone-revenue source. User Fees The City shall recalculate on a bi-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. The City shall set fees and user charges for the Golf Course fund at a level that fully supports the total direct and indirect costs of operation, including depreciation. Reporting and Analysis To ensure compliance with Revenue Policies, Fund Balance Policies, and Budget Policies, the City Finance Department shall prepare reports and analyses annually to monitor, project, and estimate revenue and expenditures, to wit: ~ @ Five-Year Forecast of Revenues and Expenditures - A planning tool prepared and used by the Finance Department to forecast and project various funds (General, Local Option Gas Tax, Discretionary Sales Tax, Golf Course and Airport); 8 Attachment "1" City of Sebastian, Florida Financial Policies ~ Situational Analysis - Every two years, as part of the Strategic Planning Process, an analysis of the demographic, legislative, and customer requirements shall be made. Part of the project includes a "SWOT" (Strengths, Weaknesses, Opportunities, Threat) analysis. ~ Financial Trend Monitoring System - A set of fmancial trends and ratios used as leading indicators and as a measurement of relative performance. The Finance Department shall produce this report annually. ~ Revenue Manual - A guide to the major revenue sources that indicates the source, calculation, legal requirements, and accounting guidelines. Updated annually, as necessary, by the Finance Department. ~ Reserve Analysis - The City Finance Director will annually review the reserve levels and produce a report that indicates up-to-date reserve levels as compared to policy goals. ~ Investment Portfolio Reports - A quarterly report designed to track and analyze the performance of our investment portfolio. Investment Policies Investment Management The City Finance 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. (See Investment Policy.) When permitted by law, the City shall pool cash from each respective fund for investment purposes. Investments shall be managed by a third-party administrator to achieve optimal return on the City's investments. Investment Analysis The City shall review its investment policies established for investing surplus funds to account for changes in legislation and market conditions on an annual basis. The City shall prepare quarterly investment portfolio reports containing the overall performance of the fund. 9 @