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HOME OF PELICAN ISLAND
SEBASTIAN CITY COUNCIL
AGENDA
SPECIAL MEETING -BUDGET HEARING
WEDNESDAY, SEPTEMBER 19, 2007 - 6:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. CITY MANAGER UPDATE
5. FINAL PUBLIC HEARING AND ADOPTION OF MILEAGE AND FY 2007/2008
BUDGET
A. City Manager Announcement of Proposed Millage Rate of 3.0519 Mills Which is
4.99% Less than Rolled-Back Rate of 3.2121 Mills
B. Mayor Opens Public Hearing on Proposed Millage and Budget
C. Council Deliberation
D. Adopt RESOLUTION NO. R-07-37 -Millage Rate for Calendar Year 2007
1-~ (Finance Director Transmittal, R-07-37)
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING
A MILEAGE RATE OF 3.0519 MILLS FOR THE CALENDAR YEAR 2007; PROVIDING FOR
CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
E. Adopt RESOLUTION NO. R-07-38 -Fiscal Year 2007/2008 Budget (Finance
9-15 Director Transmittal, R-07-38, 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, 2007 AND ENDING SEPTEMBER 30, 2008; 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, 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.
6. OTHER FISCAL MATTERS
A. Adopt RESOLUTION NO. R-07-36 -City Financial Policies (Finance Director
17-30 Transmittal, R-07-36)
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.
7. ADJOURN (All meetings shall adjourn at 10:30 pm unless extended for up to one half
hour by a majority vote of City Council)
ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE WITH RESPECT TO ANY MATTER
CONSIDERED AT THIS MEETING WILL NEED A RECORD OF THE PROCEEDINGS AND MAY 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. (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.
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HOME OF PELICAN ISLAND
City of Sebastian, Florida
Subject: Resolution No. R-07-37 Agenda No. ~ ~, ~ 7 U
Adoption of Millage Rate for Calendar Year
2007. Department Origin: Finance
~~~~
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City Attorney:
Approve for mitt41 by: City Manager City Clerk:
Date Submitted: September 12, 2007
For Agenda of: September 19, 2007
Exhibits:
- Resolution No. R-07-37
- Copy of DR 420 Certification of Taxable Value
EXPENDITURE AMOUNT BUDGETED: APPROPRIATION
REQUIItED: N/A N/A REQUIItED: N/A
Si1MMARY
In accordance with Florida Statute 200.065 (7)(a.)(l.), a proposed millage tax rate for calendar
year 2007 and for the budget year beginning October 1, 2007 and ending September 30, 2008, was
adopted by City Council on September 10, 2007.
The tentatively adopted millage tax rate of THREE POINT ZERO FIVE ONE NINE (3.0519)
MILLS is 4.99% lower than the "rolled-back" tax rate of 3.2121 mills and will provide sufficient
operating revenue for the proposed budget for fiscal year 2007/2008.
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-07-37 establishing the millage tax rate of 3.0519 mills for calendar
year 2007.
0
RESOLUTION NO. R-07-37
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN
RIVER COUNTY, FLORIDA, ADOPTING A MILEAGE
RATE OF 3.0519 MILLS FOR THE CALENDAR YEAR 2007
AND ALLOCATING SAME TO THE FISCAL YEAR
BEGINNING OCTOBER 1, 2007 AND ENDING SEPTEMBER
30, 2008; PROVIDING FOR CONFLICTS; 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. MILEAGE 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, 2007. through
December 31, 2007) 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, 2007
and ending September 30, 2008.
Section 2. ROLLED-BACK RATE. The tax rate established in Section 1.
is 4.99% lower than the computed "rolled-back" tax rate of 3.2121 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 Andrea B. Coy
Vice-Mayor Sal Neglia
Councilmember Al Paternoster
Councilmember Dale I. Simchick
Councilmember Eugene Wolff
and, upon being put
O
The Mayor thereupon declared this Resolution duly passed and adopted this 19th day of
September 2007.
CITY OF SEBASTIAN, FLORIDA
By:
Andrea B. Coy, 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
SECTION I Year.
2007
County. Indian River
Prindpal Authority: Municipality
City. R. 06/07
TA:
Levy.
Taxing Authority. idf City of Sebastian
(1) Current Year Taxable Value ofReaiPropertyforOperatingPurposes $ 1,511,347,955 (1)
(2) Current Year Taxable Value of Personal Properly for Operating Purposes $ 57,420,080 ~ (2)
(3) Current Year Taxable Value of Centrally Assessed Property for Operating Purposes $ 1,106,497 (3)
(4) Current Year Gross Taxable Value for Operating Purposes (1) + (2) + (3) _ (4) $ 1,569,874,532 (a)
(5) Current Year Net New Taxable Value
(New Construction +Additions + RehabilitatNe Improvements Increasing Assessed Value By At ~ ,
. Least 900%+Annexations +TOtal Tangble Personal Property Taxable Value In Excess of 115%
of the Previous Year's Total Tangible Personal Property Taxable Value -Deletions) $ 99,737,967 (5)
(6) CurreMYearAdjusted Taxable Value (4) - (5) $ -. 1,470,136,565 (s)
(7) Prior Year FINAL Gross Taxable Value (From Prior YearApplicabie Fonn DR-403 Series) $ 1,547,382,611 (7)-
(8) Enter number of Tax Increment Value Worksheets (DR-420TIF) attached (If none, enter 0) 2
I do hereby certify the values shown herein to be coned to the best of my knowledge and belief. Witness my hand and official signature
at Vero Beach ,Florida, this the 28 day of Jcm-07 0 ,and Year)
- ~ S afore of P
SECTION II TAXING AUTNORITY: n this portion of the form is not completes in FULL yourAuthority will. be denied TRIM certiflcatton and possibly lose its millage
levy prNilege for the tax year. ff arty Itne is inapplicable, enter WA or -Q.
(9) Prior Year Operating Miilage Levy .
(10) Prior Year Ad Valorem Proceeds m x (9)
(11) Amount, if any, paid or applied in prig year as a consequence of an obligation measured by a
dedicated incrementvalue: Sum of either line (3)c or (4)a for all DR-420TIF forms
(12) Adjusted Prior Year Ad Valorem Proceeds (10) - (11)
(13) Dedicated Increment Value, if any. Sum of either line (3)b or (4)e forall DR-420TIF forms
(14) Adjusted Current Yeaz Taxable Value (B) - (13)
(15) Cun'ent Year Rolled-Back Rate (12) divided by (14)
(1B) Current Year Proposed Operating Millage Rate
$
$ 3.0519
4, 722, 457 per$1,aoo (g)
(io)
$ 270,195. ` ~ (11)
$
$ .2121 ~
3.0519 ~.:... per$1,D00 (15)
• par$~,ooo (~6)
(17) Check TYPE of PAncipal Authority (check one)County Independent Sp. Dist
. ®Muniapality Water Man. District
(18) ChedcApplicableTaxingAuthorily(chedcone) ~PrindpalAuthority ~Dep.Spec.Dist. ~MSTU
(19) Is millage levied In more than one county? (check one) ^Yes ~No
(20) Cun~errt Miilage L• evy for Voted Debt Service ~ '$ per $1,000 (20)
(21) Curtent Millage Levy for Other Voted Millage $ per $1,000 (21)
(22) Enter the Total Adjusted Prior YearAd Valorem Proceeds of ALL Dependent Speciai.Districts and $ .. ~ ~ (22)
•' MSTUs levying a millage. (The sum of Line (12) from each District's and MSTU's Fo`'rm DR-420) .~
(23) Total Adjusted Prior Year Ad Valorem Proceeds: (12) + (22) ~ g 4, 452, 262 (23>
(24) The Current Year Aggregate,Rolled-Bade Rate: (23) divided by (14) $ _;3.2121 perg1,000 (24)
(25) Current Year Aggregate Rolled-Bade Taxes (4) x (24) , , . $ :5 ; 042 , 594 (25)
(26) Enter Total of all non-voted Ad Valorem Taxes proposed to be IevJed by the Prindpal Tatung , .
Authority all Dependent Districts and N1STUs if any. Sum of line (16) x line (41 from aII Forrri DR-
4zos $ 4, 791,100
(27) Current^Year Proposed Aggregate Millage Rate: (28) divided by (4)
(28}.COtrentYe~?r Proposed Rate as a Petcerit Change of Rolled=Back Rate:.
[(Line 27 divided by Line 24) -1.00] x 100
(2s).. .
$' "3':0519 per$i,aoo (27)
-4.99
% (2a)
Date, Time and Place of the First Public.Budget Hearing: MOriClay, September. 10, 2007; 6:00 .lam Clty CounCll
Chambei"s; - S~b~as#:iari'~ City Hall, 1225 Main Street, . Sebastiatx, . FL 3
I do hereby certify iilages and rates shown herein to be coned: to the best of my knowledge and belief. FURTHER, I certify that•
all mills com the provisions of Section 200.185 and 200.071 or 200.081, F.S. WITNESS my harid~arid offidal signature at
C ' ~.::. St'lan. . ~ ,Florida, this the 26th ~ day of July; `2007 (Mornlr, and Year)
City Manager 1225 Main Street, Sebastian, FL 32958 .
Ignature and Title of Chief AdministratNe Officer Address of Physical Location
5 Street -: Shai Francis
Mefrng Address Name of Contact Person
Sebastian FL 32958 772-388-8205 772-388-8249
City State Tip Phone t= Fax #
SEE INSTRUCTIONS ON REVERSE SIDE
0
City of Sebastian, Florida
Subject: Resolution R-07-38 Agenda No. d ~ ~ ~ ~ (~
Adoption of a Budget for Fiscal Year
2007/2008 Department Origin: Finance
City Attorney:
Appro ed f ubmittal by: City Manager City Clerk: ~,
~_~ Date Submitted: September 12, 2007
For Agenda of: September 19, 2007
Exhibits:
• Resolution R-07-38
• Schedule "A"
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 2007/2008, beginning
October 1, 2007 and ending September 30, 2008, was presented to the City Council on September
10, 2007. The tentative budget was adopted by the City Council as is. The City Manager is directed
to bring back an analysis for adding additional police personnel after February 1, 2008.
There have been no 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-07-38 establishing the budget for fiscal year 2007/2008.
D
O
RESOLUTION NO. R-07-38
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, 2007 AND ENDING SEPTEMBER 30, 2008; 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, ESTABLISHING
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, 2007, and ending September 30, 2008;
and
WHEREAS, on September 10, and September 19, 2007, 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, 2007 and ending September 30, 2008.
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. The City Manager is directed to bring back an
analysis for adding additional police personnel after February 1, 2008
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 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, 2007.
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 Andrea B. Coy
Vice-Mayor Sal Neglia
Councilmember Al Paternoster
Councilmember Dale I. Simchick
Councilmember Eugene Wolff
The Mayor thereupon declared this Resolution duly passed and adopted this 19th day of
September, 2007
CITY OF SEBASTIAN, FLORIDA
By:
Andrea B. Coy, 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
/D
ATTACHMENT TO RESOLUTION R-07-38
SCHEDULE "A"
BUDGET SUMMARY
FISCAL YEAR 2007/2008
GENERAL FUND
REVENUES:
001501 Taxes and franchise fees $ 8,003,249
001501 Licenses and permits 173,000
001501 Intergovernmental 2,268,000
001501 Charges for services 310,969
001501 Fines and forfeits 59,600
001501 Miscellaneous 483,400
001501 Transfers in 538,029
001501 Restricted cash balance carryforward - 144,087
Total Revenues $ 11,980,334
EXPENDITURES:
010001 City Council $ 61,068
010005 City Manager 261,287
010009 City Clerk 280,288
010010 City Attorney 226,034
010020 Finance 384,032
010021 Management Information System 247,952
010035 Human Resources 241,252
010040 Police Special Operations 414,017
010041 Police Administration 254,305
010042 Police School Resource 154,344
010043 Police Patrol Division 1,986,230
010044 , Community Policing Unit 189,841
010046 Professional Standards 147,462
010047 Police Detective Division 556,399
010048 Police Support Services 272,105
010049 Police Dispatch Unit 430,598
010051 Engineering 494,232
010053 Stormwater Utility 1,372,194
010052 Roads and Maintenance 698,303
010054 Garage 164,787
010056 Building Maintenance 261,919
010057 Parks and Recreation 1,083,382
010059 Cemetery 165,867
010080 Growth Management 389,567
010045 Code Enforcement Division 162,752
010099 Non-departmental 1,080,117
Total Expenditures $ 11,980,334
ii
ATTACHMENT TO RESOLUTION R-07-38
SCHEDULE "A"
BUDGET SUMMARY
FISCAL YEAR 2007/2008
SPECIAL REVENUE FUNDS
LOCAL OPTION GAS TAX FUND
120010 REVENUES
Taxes $ 676,000
Miscellaneous 86,559
Total Revenues $ 762,559
120051 EXPENDITURES
Operating $ 203,699
Debt service 300,000
Transfers out 258,860
Total Expenditures $ 762,559
DISCRETIONARY SALES TAX FUND
130010 REVENUES
Taxes $ 2,700,000
Miscellaneous 107,500
Appropriation from prior year 387,683
Total Revenues $ 3,195,183
130051 EXPENDITURES
Transfers out $ 3,195,183
Total Expenditures $ 3,195,183
RECREATION IMPACT FEE FUND
160010 REVENUES
Impact fee $ 100,000
Miscellaneous 25,000
Restricted cash balance carryforward 385,000
Total Revenues $ 510,000
160051 EXPENDITURES
Transfers out $ 510,000
Total Expenditures $ 510,000
STORMWATER UTILITY FUND
163010 REVENUES
Stormwater utility fee 820,000
Miscellaneous 70,200
Restricted cash balance carryforward 50,173
Total Revenues $ 940,373
163051 EXPENDITURES
Operating $ 3,500
Transfers out 936,873
Total Expenditures $ 940,373
iz
2
ATTACHMENT TO RESOLUTION R-07-38
SCHEDULE "A"
BUDGET SUMMARY
FISCAL YEAR 2007/2008
SPECIAL REVENUE FUNDS -CONTINUED
LAW ENFORCEMENT FORFEITURE FUND
190010 REVENUES
Fines and forfeits 8,000
Miscellaneous 3, 500
Total Revenues $ 11,500
190051 EXPENDITURES
Operating $ 11,500
Total Expenditures. $ 11,500
G.R.E.A.T. PROGRAM FUND
191010 REVENUES
Intergovernmental Revenue -
Total Revenues $ -
191051 EXPENDITURES
Operating ~ $ -
Total Expenditures $ -
DEBT SERVICE FUNDS
DISCRETIONARY SALES SURTAX REVENUE BONDS
230010 REVENUES
Miscellaneous 1,975
Transfers in 1,033,619
Total Revenues $ 1,035,594
230051 EXPENDITURES
Operating $ 300
Debt service $ 1,035,294
Total Expenditures $ 1,035,594
STORMWATER UTILITY REVENUE BONDS
263010 REVENUES
Miscellaneous 875
Transfers in 436,873
Total Revenues $ 437,748
263051 EXPENDITURES
Debt service $ 437,748
Total Expenditures $ 437,748
l3
ATTACHMENT TO RESOLUTION R-07-38
SCHEDULE"A"
BUDGET SUMMARY
FISCAL YEAR 2007/2008
CAPITAL PROJECTS FUNDS
REVENUES
Transfer from Local Option Gas Tax Fund 245,000
Transfer from Discretionary Sales Tax fund 2,161,564
Transfer from Recreation Impact Fee Fund 510,000
Transfer from Community Redevelopment Agency 1,500,000
Private contribution 160,000
Grants 816,102
Total Revenues $ 5,392,666
EXPENDITURES
Roads projects 3,524,528
Recreation facilities projects 10,000
Stormwater Improvements/Physical Environment 1,318,444
Public Safety 385,000
Debt service $ 154,694
Total Expenditures $ 5 392 666
ENTERPRISE FUNDS
GOLF COURSE FUND
410010 REVENUES:
Charges for services $ 1,706,985
Miscellaneous revenues 39,692
Total Revenues $ 1,746,677
EXPENSES:
GOLF COURSE ADMINISTRATION
410110 Personal services $ 294,322
Operating expenses 361,300
Capital outlay 10,000
Debt service 306,190
Total Administration $ 971,812
GOLF COURSE GREEN DIVISION
410120 Operating expenses 562,175
410120 Capital Outlay 32,000
Total Golf Course Green Division $ 594,175
GOLF COURSE CARTS DIVISION
410130 Personal services 107,020
Operating expenses 73,670
Total Golf Course Carts Division $ 180,690
Total Golf Course Expenses $ 1,746,677
14
4
ATTACHMENT TO RESOLUTION R-07-38
SCHEDULE"A"
BUDGET SUMMARY
FISCAL YEAR 2007/2008
AIRPORT FUND
450010 REVENUES
Charges for services $ 521,365
Miscellaneous revenues 21,500
Total Revenues $ 542,865
450110 EXPENSES:
Personal services $ 215,779
Operating expenses 147,086
Capital outlay 20,000
Transfer out 160,000
Total Expenses $ 542,865
BUILDING DEPARTMENT
480010 REVENUES
Charges for services $ 525,923
Miscellaneous revenues 55,000
Total Revenues $ 580,923
480110 EXPENSES:
Personal services $ 435,352
Operating expenses 145,571
Total Expenses $ 580,923
TOTAL BUDGET SUMMARY
GENERAL FUND $ 11,980,334
SPECIAL REVENUE FUNDS 5,419,615
DEBT SERVICE FUNDS 1,473,342
CAPITAL PROJECT FUNDS 5,392,666
ENTERPRISE FUNDS 2,870,465
TOTAL BUDGET FOR ALL FUNDS $ 27,136,422
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of ~ebasnan, riorma
Subject: Resolution No. R-07-36 Readopting Agenda No. ~~- 1 ~ (~
Amended Financial Policies
Department Origin: Finance ~.. .,~
Approved or Su ttal by: City Manager City Attorney:
• City Clerk:
Date Submitted: September 12, 2007.
For Agenda of: September 19, 2007
Exhibits:
• Resolution R-07-36 Readopting Financial Policies Governing Various Areas of Budget and
Finance.
• Attachment "A" -Financial Policies
EXPENDITURE REQUIRED: AMOUNT BUDGETED: N/A APPROPRIATION REQUIRED:
N/A N/A
SUMMARY
Pursuant to City of Sebastian Resolution 06-20, the financial policy shall be readopted annually. There
are a few changes made to the policies. One major change is the elimination of the General Fund
$1,000,000 reserve for the purpose of providing advances to the Airport for capital improvements. The
resolution established the loan reserve will expire September 30, 2007. Staff recommends not extending
the reserve requirement due to the fact that interfund loan between funds is a common and acceptable
accounting practice. It is not necessary to reserve General Fund fund balance for this purpose. Other
changes are minor.
RECOMMENDED ACTION
Move to adopt Resolution R-07-36.
f~
i8
RESOLUTION NO. R 07-36
A RESOLUTION OF THE CITY OF SEBASTIAN; FLORIDA,
READOPTING AMENDED FINANCIAL POLICIES GOVERNING
VARIOUS AREAS OF BUDGET AND FINANCE AS PROVIDED FOR IN
ATTACHMENT "A"; 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
Council 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
the vote was as follows:
Mayor Andrea Coy
Councilmember Sal Neglia
Councilmember Al Paternoster
Councilmember Dale I. Simchick
Councilmember Eugene Wolff
and, upon being put to a vote,
The Mayor thereupon declared this Resolution duly passed and adopted this 19th day of
September, 2007.
/9
CITY OF SEBASTIAN, FLORIDA
By:
Andrea Coy, Mayor
ATTEST:
Sally A. Maio, MMC
City Clerk
Approved as to Form and Legality for
Reliance by the City of Sebastian Only:
By:
Rich Stringer, City Attorney
20
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. 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.
Overall Goals
The overall financial goals underlying these policies are:
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 financial 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.
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,
ZI
Attachment "A"
City of Sebastian, Florida
Financial Policies
Growth Management, Building Maintenance, and Human Resources) and will be used to reimburse the
General Fund for the administrative and support services provided to these funds.
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 OS-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.
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 interactions 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 governmental funds (General, Special Revenue, Debt Service Funds, and ca~tal
project, funds) shall be prepared on a modified accrual basis of accounting.
avg. ,
r,,,.,..~,.e,,e.,~;.,e n.,,,,,.,i ~;,,.,..,,;.,~ ~o,..,.,.+ This means that 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 yet. 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 they are 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 purchase orders,
excluding the capital projects funds purchase orders, will automatically lapse.
ZZ
2
Attachment "A"
City of Sebastian, Florida
Financial Policies
~~
The Comprehensive Annual Financial Report (CAFR) presents the status of the City's finances on the basis of
Generall~Accepted Accountin 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. Principal pavments on lone-term debt within the enternrise funds are applied to the outstandin
liability on a GAAP basis as opposed to being expended when paid on a bud~?et 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 as an expense.
4. Inventoryis 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 b~ employees on a GAAP basis as opposed to being
expended when paid on a budget basis.
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 final 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.
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 permitted under Florida State Statutes.
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 Deparhnent 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.
Z3
3
Attachment "A"
City of Sebastian, Florida
Financial Policies
Planning
The City will annually prepare and distribute to deparhnents and the City Council aFive-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' improvement plan.
Fund Balance Policies
C+n 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 twenty-
five percent (25%) of the annual General Fund Expenditures budget. This amount approximates three months or
90 days of working capital.
The City shall include in the General Fund operating budget annually, an Cpperating 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, CWA/ITU 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 actuarial
analysis performed at a minimum of every two years, or as needed.
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%) of the 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.
,.~ ~,, e oa ~;„o icy , ~rt,o +o,..~, o ~ eor+e,, ..~.o.. ~n ~nn~
29
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Attachment "A"
City of Sebastian, Florida
Financial Policies
The table listed blow is a summary of all reserve and contingency requirements for the General Fund.
Reserve Descri tion Re uirement
Workin Ca ital Reserve 25% of annual General Fund Ex enditures bud et
Emer enc Reserve $350,000
Pro a and Casual claims Reserve $100,000
Capital Equipment Replacement Reserve 50% of the current year's operating surplus (revenues in excess of
ex enditures
ci nnn nnn e .e ce..«o....~.o,. i~ ~nn~
> ,
General Fund Operating Contingency (for
bud et u ose onl) 1.5% of the General Fund total expenditures budget, less debt.
service, interfund transfers and ca ital ex enditures
Capital Contingency (for budget purpose only) 0.5% of the General Fund total expenditures budget, less debt
service, interfund transfers and ca ital ex enditures
All retirement programs 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 financial
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
amounts transferred shall be deemed corpus to the Cemetery Trust fund for future earnings growth to fund
Cemetery care and maintenance.
- 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.
5
zs
Attachment "A"
City of Sebastian, Florida
Financial Policies
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
., .. - -
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.
Reporting Performance
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 staff to
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;
2G
6
Attachment "A"
City of Sebastian, Florida
Financial Policies
• 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 maj or 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 (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 ~ plan 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 get-Plan
The City shall adopt an annual Capital Budget based on the Capital Improvement ~ Plan. 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 t plan projections.
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 1?regran~
~ Plan.
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.
27
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Attachment "A"
City of Sebastian, Florida
Financial Policies
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 financial 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 afive-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 spay-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 financial 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 fmancial advisor, determines that this is the City's
best financial interest. Lease/purchase decisions should have the concurrence of the appropriate
department/division head.
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) financed.
~~
8
Attachment "A"
City of Sebastian, Florida
Financial Policies
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 financing instead of general obligation
bonds, so those benefiting from the improvements will bear all or part of the cost of the project financed.
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 any one-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 D D '' , ~' a u ' n^""'°", "„'' ~"''d + n^''^ the adopted financial
olp icies, the City Finance Deparhnent shall prepare ~e~d analyses in conjunction with the annual budget
rp ocess wally to assist deparhnent/division with budget projections. m a "+'"'~+° "°"°""°
:The anal~es include the following-
- 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, Building, and Airport);
29
9
Attachment "A"
City of Sebastian, Florida
Financial Policies
~ ,
- Financial Trend Monitoring System - A set of financial trends and ratios used as leading indicators and as a
r~„
measurement of relative performance. The ~ ~^-~°° T`°^ :~,°„+ ~,.~n ,.,.,.a,,,,° +~~c _°,..,.,.+ ,._~__~i,..
- Revenue Manual - A guide to the major revenue sources that indicates the source, calculation, legal
requirements, and accounting guidelines., Updated annually and included in the annual budget document; as
neoessa~; 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 Policies
Investment Management
The City Finance Deparhnent 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.
r,,.,o~+,,,o„+~ ~,~.,» ~o ,-,.,.,r.,,,oa v... The City's Finance Director shall manage all City's investments with
the assistance from athird-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.
30
10