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HomeMy WebLinkAbout09232009Special BudgetB. City Manager Update OTYCF HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL AGENDA SPECIAL MEETING FY 2009/2010 MILLAGE AND BUDGET WEDNESDAY, SEPTEMBER 23, 2009 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA ALL AGENDA DOCUMENTATION MAYBE INSPECTED IN THE OFFICE OF THE CITY CLERK 1225 MAIN STREET, SEBASTIAN, FLORIDA OR ON THE CITY WEBSITE 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. FINAL PUBLIC HEARING ON MILLAGE AND FY 2009/2010 BUDGET A. City Manager Announces Proposed Millage Rate of 3.3456 Mills which is 12.1% Less than Rolled -Back Rate of 3.8038 Mills C. Public Hearing City Attorney Reads R -09 -36 and R -09 -37 by Title and Mayor Opens Public Hearing 09.056 i. RESOLUTION NO. R -09 -36 Millage Rate for Calendar Year 2009 1-4 (Finance Transmittal, R- 09 -36) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A MILLAGE RATE OF 3.3456 MILLS FOR THE CALENDAR YEAR 2009 AND ALLOCATING SAME TO THE FISCAL YEAR BEGINNING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010; PROVIDING FOR CONFLICTS; AND PROVIDING FOR EFFECTIVE DATE. 09.056 ii. RESOLUTION NO. R -09 -37 Fiscal Year 2009/2010 Budget 5-13 (Finance Transmittal, R- 09 -37, Schedule A, Proposed Budget Previously Provided) 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, 2009 AND ENDING SEPTEMBER 30, 2010; 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 EFFECTIVE DATE. 5. OTHER MATTERS RELATING TO THE BUDGET 09.056 A. RESOLUTION NO. R -09 -38 City Financial Policies 15-27 (Finance Transmittal, R- 09 -38, Attachment A) 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. 09.056 B. RESOLUTION NO. R -09 -39 Airport Lease to the Golf Course 29 -42 (Finance Transmittal, R- 09 -38, Exhibit A, R- 00-48, Exhibit A) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AMENDING RESOLUTION NO. R- 00-48, AUTHORIZING THE CITY MANAGER TO EXECUTE A NEW LEASE AGREEMENT BY AND BETWEEN THE CITY OF SEBASTIAN FOR USE OF LAND FROM THE SEBASTIAN MUNICIPAL AIRPORT IN THE OPERATION OF THE SEBASTIAN MUNICIPAL GOLF COURSE; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. 6. ADJOURN (Special Meetings shall adjoum by 10 pm) 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 EVIDENSE UPON WHICH THE APPEAL IS TO BE HEARS. (F. S. 286.0105) IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT (ADA), ANYONE WHO NEEDS A SPECIAL ACCOMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589 -5330 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING. City of Sebastian, Florida Subject: Resolution No. R -09 -36 Adoption of Millage Rate for Calendar Year 2009. Ap rov for Submittal by: nner, City Manager Exhibits: Resolution No. R-09-36 EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A Agenda No. Department Origin: Administrative Services Reviewed By: City Attorney: City Clerk: Date Submitted: September 15, 2009 For Agenda of: September 23, 2009 APPROPRIATION REQUIRED N/A SUMMARY In accordance with Florida Statute 200.065 (7)(a.)(1.), a proposed millage tax rate for calendar year 2009 and for the budget year beginning October 1, 2009 and ending September 30, 2010, was adopted by City Council on September 14, 2009. 3. The tentatively adopted millage tax rate of THREE POINT THREE SIX FOUR SIX (3.3646) MILLS is 12.1% lower than the "rolled- back" tax rate of 3.8038 mills and will provide sufficient operating revenue for the proposed budget for fiscal year 2009/2010. 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 -09 -36 establishing the millage tax rate of 3.3456 mills for calendar year 2009. I RESOLUTION NO. R -09 -36 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ADOPTING A MILLAGE RATE OF 3.3456 MILLS FOR THE CALENDAR YEAR 2009 AND ALLOCATING SAME TO THE FISCAL YEAR BEGINNING OCTOBER 1, 2009 AND ENDING SEPTEMBER 30, 2010; 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. MILLAGE RATE LEVY. There is hereby Levied an Ad Valorem Tax of THREE POINT THREE FOUR FIVE SIX (3.3456) MILLS against all real and tangible personal property for the calendar year (January 1, 2009 through December 31, 2009) 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, 2009 and ending September 30, 2010. Section 2. ROLLED -BACK RATE. The tax rate established in Section 1. is 12.1% lower than the computed "rolled- back" tax rate of 3.8038 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 and, upon being put into a vote, the vote was as follows: Mayor Richard H. Gilhnor Vice -Mayor Jim Hill Councilmember Andra B. Coy Councilmember Dale I. Simchick Councilmember Eugene Wolff The Mayor thereupon declared this Resolution duly passed and adopted this 23` day of September 2009. ATTEST: Sally A. Maio, MMC City Clerk CITY OF SEBASTIAN, FLORIDA By: Richard H. Gillmor, Mayor Approved as to form and legality for the reliance by the City of Sebastian only: Robert Ginsburg, City Attorney Subject: Resolution R -09 -37 Adoption of a Budget for Fiscal Year 2009/2010 Ap rov for Submittal by: It .1k. Agenda No. Department Origin: Administrative By: City Attorney: Service( �J City Clerk: 1 er, City Manager Date Submitted: September 15, 2009 For Agenda of: September 23, 2009 Exhibits: Resolution R -09 -37 Schedule "A" AMOUNT BUDGETED: N/A APPROPRIATION REQUIRED: N/A EXPENDITURE REQUIRED: N/A HOME OF PELICAN ISLAND City of Sebastian, Florida SUMMARY In accordance with Florida Statute 200.065, a tentative budget for fiscal year 2009/2010, beginning October 1, 2009 and ending September 30, 2010, was presented to the City Council on September 14, 2009. The tentative budget was adopted by the City Council as presented. 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 -09 -37 establishing the budget for fiscal year 2009/2010. 1 RESOLUTION NO. R -09 -37 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, 2009 AND ENDING SEPTEMBER 30, 2010; 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, 2009, and ending September 30, 2010; and WHEREAS, on September 14 and September 23, 2009, 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, 2009 and ending September 30, 2010. Section 2. The amounts shown on the attached Schedule "A" are hereby appropriated out of the Treasury of the City, including any revenues accruing to the City available for purposes of the City's budgetary accounts. Section 3. The City Manager is hereby authorized and directed to proceed with the implementation of the service programs and projects provided for in the budget. Such implementation is to be consistent with the provisions of the City Code of Ordinances and policies established by the City Council. Section 4. The City Manager is authorized to make budget adjustments within budgetary accounts, as he deems appropriate. He is further authorized to make budget adjustments between budgetary accounts when necessary to implement programs, projects, and expenditures authorized by the City Council. All other budgetary adjustments will require 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, 2009. 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 Richard H. Gillmor Vice -Mayor Jim Hill Councilmember Andrea Coy Councilmember Dale I. Simchick Councilmember Eugene Wolff The Mayor thereupon declared this Resolution duly passed and adopted this 23 day of September, 2009 ATTEST: Sally A. Maio, MMC City Clerk CITY OF SEBASTIAN, FLORIDA By: Richard H. Gillmor, Mayor Approved as to form and legality for the reliance by the City of Sebastian only: Robert Ginsburg, City Attorney REVENUES: 001501 001501 001501 001501 001501 001501 001501 001501 EXPENDITURES: 010001 City Council 010005 010009 010010 010020 010021 010041 010043 010047 010049 010045 010052 010053 010054 010056 010057 010059 010080 010099 ATTACHMENT TO RESOLUTION R-09 -37 SCHEDULE "A" BUDGET SIf1VIMARY FISCAL YEAR 2009/2010 Taxes and franchise fees Licenses and permits Intergovernmental Charges for services Fines and forfeits Miscellaneous Transfers in Restricted cash balance carryforward Total Revenues City Manager City Clerk City Attorney Administrative Services Management Information System Police Administration Police Operations Police Detective Division Police Dispatch Unit Code Enforcement Division Roads and Maintenance Stormwater Utility Garage Facilities Maintenance Parks and Recreation Cemetery Growth Management Non departmental Total Expenditures GENERAL FUND 1 7,531,430 51,400 1,694,776 289,147 55,000 423,190 764,888 84,021 10,893,852 52,117 254,480 296,444 125,340 492,658 266,913 542,347 2,558,640 922,437 486,195 137,840 888,638 1,153,181 211,761 268,022 1,016,195 156,211 437,156 627,277 10,893,852 SPECIAL REVENUE FUNDS 120010 REVENUES Taxes 676,500 Miscellaneous 28,506 Appropriation from prior year 112,994 Total Revenues 818,000 120051 EXPENDITURES Operating 243,000 Debt service 300,000 Grants and Aids 50,000 Transfers out 225,000 Total Expenditures 818 130010 REVENUES Taxes Miscellaneous Appropriation from prior year Total Revenues 130051 EXPENDITURES Transfers out Total Expenditures RECREATION IMPACT FEE FUND 160010 REVENUES Impact fee 33,000 Miscellaneous 23,247 Restricted cash balance carryforward 143,753 Total Revenues 200,000 160051 EXPENDITURES Transfers out 200,000 Total Expenditures 200,000 163010 REVENUES Stormwater utility fee Miscellaneous Restricted cash balance carryforward Total Revenues 163051 EXPENDITURES Operating Transfers out Total Expenditures ATTACHMENT TO RESOLUTION R-09-37 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2009/2010 LOCAL OPTION GAS TAX FUND DISCRETIONARY SALES TAX FUND STORMWATER UTILITY FUND 2 2,460,000 50,445 352,922 2,863,367 2,863,367 2,863,367 850,000 27,344 60,996 938,340 100 938,240 938 SPECIAL REVENUE FUNDS CONTINUED LAW ENFORCEMENT FORFEITURE FUND 190010 REVENUES Fines and forfeits 8,000 Miscellaneous 2,200 Total Revenues 10,200 190051 EXPENDITURES OPerating Unappropriated Total Expenditures DEBT SERVICE FUNDS ATTACHMENT TO RESOLUTION R-09 -37 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2009/2010 10,200 10,200 COMMUNITY REDEVELOPMENT AGENCY FUND 163010 REVENUES Tax Increment Sebastian 228,326 Tax Increment Indian River County 209,442 Miscellaneous 2,767 Restricted cash balance carryforward 164,867 Total Revenues 605,402 163051 EXPENDITURES Operating 115,402 Grants and Aids 30,000 Transfers out 460,000 Total Expenditures 605,402 DISCRETIONARY SALES SURTAX REVENUE BONDS 230010 REVENUES Miscellaneous 1,000 Transfers in 1,035,869 Total Revenues 1 230051 EXPENDITURES drat ng 300 Debt service 1,036,569 Total Expenditures 1,036,869 STORMWATER UTILITY REVENUE BONDS 263010 REVENUES Miscellaneous 120 Transfers in 438,240 Total Revenues 438,360 263051 EXPENDITURES OPerating 875 Debt service 437,485 Total Expenditures 438,360 3 CAPITAL PROJECTS FUNDS REVENUES Transfer from Local Option Gas Tax Fund 50,000 Transfer from Discretionary Sales Tax fund 1,827,498 Transfer from Recreation Impact Fee Fund 200,000 Transfer from Cemetery Trust 50,000 Transfer from Community Redevelopment Agency 400,000 Airport Operating Revenues 3,946 Grants 153,948 Restricted cash balance canryforward 928,752 Total Revenues 3,614,144 ENTERPRISE FUNDS c2) ATTACHMENT TO RESOLUTION R-09 -37 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2009/2010 EXPENDITURES Transportation 1,354,144 Recreation facilities projects 100,000 Stormwater Improvements/Physical Environment 975,000 Public Safety 385,000 General Government 800,000 Total Expenditures 3,614,144 GOLF COURSE FUND 410010 REVENUES: Charges for services 1,521,860 Miscellaneous revenues 6,538 Restricted cash balance canryforward 57,515 Total Revenues 1,585,913 EXPENSES: GOLF COURSE ADMINISTRATION 410110 Personal services 265,083 Operating expenses 299,170 Debt service 313,100 Total Administration 877,353 GOLF COURSE GREEN DIVISION 410120 Operating expenses 550,550 Total Golf Course Green Division 550,550 GOLF COURSE CARTS DIVISION 410130 Personal services 84 Operating expenses 73,070 Total Golf Course Carts Division 158,010 Total Golf Course Expenses 1,585,913 4 ATTACHMENT TO RESOLUTION R-09 -37 SCHEDULE "A" BUDGET SUMMARY FISCAL YEAR 2009/2010 AIRPORT FUND 450010 REVENUES Charges for services 374,959 Miscellaneous revenues 13,260 Total Revenues 388,219 450110 EXPENSES: Personal services 231,369 Operating expenses 134,717 Debt service 8,550 Transfer out 3,946 Unappropriated 9,637 Total Expenses 388,219 BUILDING DEPARTMENT 480010 REVENUES Charges for services 356,550 Miscellaneous revenues 15,700 Restricted cash balance carryforward 117,084 Total Revenues 489,334 480110 EXPENSES: Personal services 379,674 Operating expenses 109,660 Total Expenses 489,334 TOTAL BUDGET SUMMARY GENERAL FUND 10,893,852 SPECIAL REVENUE FUNDS 5,435,309 DEBT SERVICE FUNDS 1,475,229 CAPITAL PROJECT FUNDS 3,614,144 ENTERPRISE FUNDS 2,463,466 TOTAL BUDGET FOR ALL FUNDS 23,882,000 5 1 HOME OF PELICAN ISLAND City of Sebastian, Florida Subject: Resolution No. R -09 -38 Readopting Amended Financial Policies EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A Agenda No. Department Origin: Administrative Services Reviewed By: City Attorney: Ea City Clerk: Date Submitted: September 15, 2009 For Agenda of: September 23, 2009 Exhibits: Resolution R -09 -38 Readopting Financial Policies Governing Various Areas of Budget and Finance. Attachment "A" Financial Policies APPROPRIATION REQUIRED: N/A SUMMARY Pursuant to City of Sebastian Resolution 06 -20, the financial policy shall be readopted annually. Although there are no changes made to the policies, it should be noted that for fiscal year 2009 /2010, the City will be suspending the Fund Balance Policies regarding the Operating Contingency Account and the Capital Contingency Account. This is expected to be a temporary measure to allow the budget to be balanced this year with the decline in revenues as a result of declining taxable property values and the economic slowdown. Move to adopt Resolution R- 09 -38. RECOMMENDED ACTION RESOLUTION NO. R -09 -38 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. Fund Balance Policies regarding the Operating Contingency Account and the Capital Contingency Account will be suspended for Fiscal Year 2009/2010. SECTION 3. All resolutions or parts of resolutions in conflict herewith are hereby repealed. SECTION 4. This Resolution shall take effect upon adoption. The foregoing Resolution was moved for adoption by Council Member Motion was seconded by Council Member and, upon being put to a vote, the vote was as follows: Mayor Richard H. Gillmor Vice -Mayor Jim Hill Councilmember Andrea B. Coy Councilmember Dale I. Simchick Councilmember Eugene Wolff The Mayor thereupon declared this Resolution duly passed and adopted this 23 day of September, 2009. ATTEST: Sally A. Maio, MMC City Clerk CITY OF SEBASTIAN, FLORIDA By: Richard H. Gilimor, Mayor Approved as to Form and Legality for Reliance by the City of Sebastian Only: By: Robert Ginsburg, City Attorney Overall Goals 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. The overall financial goals underlying these policies are: 1. Fiscal Conservatism: To ensure the city is in a solid financial condition at all times. This can be defined as: A. Cash Solvency the ability to pay bills B. Budgetary Solvency the ability to balance the budget C. Long Term Solvency the ability to pay future costs D. Service Level Solvency the ability to provide needed and desired services 2. Flexibility: To ensure that the city is in a position to respond to changes in the economy or new service challenges without an undue amount of financial stress. 3. 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 Administrative Services Department, with support and direction from the Office of the City Manager, coordinates the budget process. The formal budgeting process, which begins in March 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 paid to the General Fund by each enterprise fund. This assessment will be calculated based upon a percentage (ratio of both the number of full -time equivalent employees of the enterprise fund/total number of full -time equivalent employees of the City and ratio of the operating budget of the enterprise funs /total operating budget of the City) of total budgeted General Fund administration expenditures (includes City Council, City Manager, City Attorney, City Clerk, Administrative Services, Growth Management and Facilities Maintenance). 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. 22 20 Attachmen "A" City of Sebasti Florida Financial P licies 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. It is also evaluated as to proposed projects being consistent with the City's Comprehensive Plan. 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 Capital Project funds) shall be prepared on a modified accrual basis of accounting. 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. The Comprehensive Annual Financial Report (CAFR) presents the status of the City's fmances on the basis of Generally Accepted Accounting Principles (GAAP). Since FY 2001, the CAFR has been prepared in compliance with Governmental Accounting Standards Board (GASB) Statement 34 requirements. The CAFR shows fund expenditures and revenues on both a GAAP basis and budget basis for comparison purposes. In most cases, this conforms to the way the City prepares its budget with the following exceptions: 1. Principal payments on long -term debt within the enterprise funds are applied to the outstanding liability on a GAAP basis as opposed to being expended when paid on a budget basis. 2. Capital outlay within the proprietary funds are recorded as assets on a GAAP basis and expended on a budget basis. 3. Depreciation expense is not budgeted as an expense. 4. Inventory is expensed at the time it is used. 5. Compensated absences liabilities that are expected to be liquidated with expendable available financial resources are accrued as earned by employees on a GAAP basis as opposed to being expended when paid on a budget basis. 23 Attachment "A" City of Sebastian, Florida Financial Policies Guidelines The Comprehensive Annual Financial Report (CAFR) presents the status of the City's fmances 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 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 improvement plan. 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. 24 Reserve Description Requirement Working Capital Reserve 25% of annual General Fund Expenditures budget Emergency Reserve $350,000 Property and Casualty claims Reserve $100,000 Capital Equipment Replacement Reserve 50% of the current year's operating surplus (revenues in excess of expenditures) General Fund Operating Contingency (for budget purpose only) 1.5% of the General Fund total expenditures budget, less debt service, interfund transfers and capital expenditures Capital Contingency (for budget purpose only) 0.5% of the General Fund total expenditures budget, less debt service, interfund transfers and capital expenditures All retirement programs 100% Funded per independent actuarial analysis performed at a minimum of every two years, or as needed The table listed below is a summary of all reserve and contingency requirements for the General Fund. Attachment "A" City of Sebastian, Florida Financial Policies 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 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 pattem 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 401a 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 may 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 unscheduled replacement of 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. 25 Attachment "A" City of Sebastian, Florida Financial Policies 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 avoid using 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 for the purpose of alleviating the impact of a decline in amounts collected on proposed capital expenditures. 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 alleviating the impact of decline in amounts collected on proposed capital expenditures and to provide sufficient funds for unanticipated replacements of 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. 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 improvements and for the purpose of alleviating the impact of a decline in amounts collected. 26 27 Attachment "A" City of Sebastian, Florida Financial Policies 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; Fiscal Impact Model Allocation methodology that quantifies average and marginal revenues and the costs of new development by land use type; Revenue Forecasting Model Statistical time series analysis and tracking model of major revenue sources; Performance Measurement System Quarterly performance evaluations and reports; Capital Budgeting Tools Present Value Payback, Net Present Value Analysis, Own/Lease Analysis, and Return on Investment (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 fmancial indicators; Definition Attachment "A" City of Sebastian, Florida Financial Policies Capital Improvement Program Policies Definition Capital improvements include streets, buildings, building improvements, park expansions/improvements, new parks, 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 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 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 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 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. Capital Equipment Outlay 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 five -year periods and 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 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. 28 Attachmen "A" City of Sebasti Florida Financial P licies 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 fmancial 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 s all be classified into "pay as you go" and "debt financing" classifications. Pay -as- you -go capital items ill be $150,000 or less with lives of ten years or less. Debt financing will only be used for major, non -re urring 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 Consultant determines that this is in the City's best financial interest. Lease /purchase decisions should have the concurrence of the appropriate department/division head and should consider the net cost after factoring in anticipated maintenance expenditures. 2. Issuance of 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. The City shall confine long -term borrowing to capital improvements and projects that have useful lives in excess of twenty (20) years. If General Obligation Bonds are issued, the City's goal will be to limit the maturity to fifteen (15) years. When possible, the City shall use a special assessment or self supporting financing instead of general obligation bonds, so those benefiting from the improvements will bear all or part of the cost of the project financed. 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 Consultant, 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. 29 Attachment "A" City of Sebastian, Florida Financial Policies 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 the adopted financial policies, the City Administrative Services Department shall prepare analyses in conjunction with the annual budget process to assist departments /divisions with budget projections. The analyses include the following: Five Year Forecast of Revenues and Expenditures A planning tool prepared and used by the Administrative Services Department to forecast and project various funds (General, Local Option Gas Tax, Discretionary Sales Tax, Golf Course, Building, and Airport); Financial Trend Monitoring System A set of financial trends and ratios used as leading indicators and as a measurement of relative performance. 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. 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 Administrative Services Department shall perform a cash flow analysis of all funds on a regular basis. Disbursement, collection, and deposit of all funds will be scheduled to insure optimum cash availability. (See Investment Policy.) When permitted by law, the City shall pool cash from each respective fund for investment purposes. The City Finance Director shall manage all City investments with the assistance from 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 information on the securities being held and the overall performance of the fund. 30 1 sEtis*iAN HOME Of PELICAN ISLAND City of Sebastian, Florida Subject: Resolution No. R -09 -39 Amending Resolution No. R -00 -48 and Amending the Lease Agreement By and Between the Airport and Golf Course. Ap.rov or Submittal by: A inner, City Manager EXPENDITURE REQUIRED: N/A Agenda No. Department Origin: Administrative Services (-r, n Reviewed By: City Attorney: City Clerk: Date Submitted: September 15, 2009 For Agenda of: September 23, 2009 Exhibits: Resolution No. R -09 -39 Exhibit "A" Airport Lease Amendment Resolution No. R -00 -48 Exhibit "A" Airport Lease AMOUNT BUDGETED: N/A APPROPRIATION REQUIRED: N/A SUMMARY Resolution No. R -00 -48 authorized the Airport Lease by the Golf Course and established an initial annual rent amount charged to the Golf Course by the Airport of $120,000; provided for an increase to $175,000 in 2005; and a further increase to $250,000 in 2010. In consideration of the significant decline of property values, it is recommended that the remaining annual rent amounts from October 1, 2009 through September 30, 2015 be adjusted to $135,000. Adoption of Resolution N. R -09 -39 will authorize the City Manager to execute the proposed Airport Lease Amendment to modify the rent to $135,000. This amount was used in the Proposed City Budget for FY 2009 -10 that is also being considered for adoption at this meeting. RECOMMENDED ACTION Move to adopt Resolution R- 09 -39, authorizing the City Manager to execute the Airport Lease Amendment. A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AMENDING RESOLUTION NO. R- 00-48, AUTHORIZING THE CITY MANAGER TO EXECUTE A NEW LEASE AGREEMENT BY AND BETWEEN THE CITY OF SEBASTIAN FOR USE OF LAND FROM THE SEBASTIAN MUNICIPAL AIRPORT IN THE OPERATION OF '1'Ii.E SEBASTIAN MUNICIPAL GOLF COURSE; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sebastian has leased a portion of the Sebastian Municipal Airport Property for use as a municipal golf course since 1981; and WHEREAS, the CITY has determined that the fair value previously established in said Lease should be adjusted; and WHEREAS, the Airport is agreeable to said changes to said Lease, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, that: Section 1. The City Manager is hereby authorized to execute the City of Sebastian Airport Lease Amendment as attached hereto as Exhibit "A Section 2. All Resolutions or parts of Resolutions in conflict herewith are hereby repealed. Section 3. This Resolution shall take effect immediately upon its adoption. The foregoing Resolution was moved for adoption by Councilmember The motion was seconded by Councilmember and, upon being put into a vote, the vote was as follows: Mayor Richard H. Gillmor Vice -Mayor Jim Hill Councilmember Andrea B. Coy Councilmember Dale I. Simchick Councilmember Eugene Wolff The Mayor thereupon declared this Resolution duly passed and adopted this 23rd day of September 2009. CITY OF SEBASTIAN, FLORIDA By: Richard H. Gillmor, Mayor ATTEST: Sally A. Maio, MMC City Clerk Approved as to form and legality for the reliance by the City of Sebastian only: Robert Ginsburg, City Attorney RESOLUTION NO. R -09 -39 All remaining terms and conditions of the initial Lease shall remain in full force and effect. This document contains two (2) pages. APPROVED by the City Council at its regular meeting on September 23, 2009. ATTEST: CITY OF SEBASTIAN A Municipal Corporation Sally A. Maio, MMC City Clerk Approved as to Form and Legality for Reliance by the City of Sebastian only: Robert Ginsburg, City Attorney 2 By: Al Minner, City Manager AIRPORT LEASE AMENDMENT THIS AMENDMENT of that certain AIRPORT LEASE dated August 23, 2000 (hereinafter called "Lease providing for the use of land from the Sebastian Municipal Airport in the operation of the Sebastian Municipal Golf Course, by and between the City of Sebastian (hereinafter called "City a municipal corporation existing under the laws of the State of Florida, provides as follows: WITNESSETH: WHEREAS, the CITY is the owner of certain property located in the County of Indian River, Florida; and WHEREAS, the certain property constitutes a portion of the Sebastian Municipal Airport (hereinafter called "Airport"); and WHEREAS, the CITY has leased a portion of such property from the Airport Enterprise Fund, for use of the Sebastian Municipal Golf Course; and WHEREAS, the CITY has determined that the fair value previously established in said Lease should be adjusted; and WHEREAS, the CITY wishes to modify said Lease; and WHEREAS, the Airport is agreeable to said changes to said Lease; and WHEREAS, the CITY desires to continue to lease the said property from the Airport, and to that end and in consideration of the premises, and the covenants, terms and conditions to be performed as set forth hereinafter, NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, it is decreed as follows: Section 4. RENT, of the Lease is hereby amended to read as follows: 4. RENT. The parties agree that the rent, payable by the CITY, during the term of this Lease shall be as follows: (a) October 1, 2000 through September 30, 2005 $120,000 (b) October I, 2005 through September 30, 2009 $175,000 (c) October 1, 2009 through September 30, 2015 $135,000 The rent for the leased premises shall be payable in advance, in monthly installments, commencing from the date of commencement of this Lease, as described above and on a like day of every month thereafter during the term of this Lease. In addition to the rental amount, the Tenant shall pay all applicable taxes arising from this Lease, if any. A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AMENDING RESOLUTION NO. R- 88-4A, AUTHORIZING THE CITY MANAGER TO EXECUTE A NEW LEASE AGREEMENT BY AND BETWEEN THE CITY OF SEBASTIAN FOR USE OF LAND FROM THE SEBASTIAN MUNICIPAL AIRPORT IN THE OPERATION OF THE SEBASTIAN MUNICIPAL GOLF COURSE; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS the CNy of Sebastian has leased portion of the Sebastian Municipal Airport Property for use as a municipal golf course since 1981: and WHEREAS, in discussions with the Federal Aviation Administretlan (FAA) It was concluded that a teaser agreement renewil setting out annual fees and other provisions should be Instituted. NOW, THEREFORE, BE IT RESOLVED SY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, that Section 1. The City Manager is hereby authorized to execute the Clty of Sebastian Airport Lease Agreement u attached hereto es Exhibit "A 'lotion 2. M Resolutions or parte of Resolutions In conflict herewith are hereby repeated. Seotlon 8. This Resolution shall become effective Immediately upon dopilon. The foregoing Resolution was moved for adoptio by Councflmember The motion was seconded by CouncilmemberPA D and, upon bet S put Into a vote, the vote was as follows: Mayor Weller Samos Councilmember Ben Bishop Co uncil member Jos Barczyk Councilmember James HIII Co uncll mo mber Edward Majche r The Mayor thereupon declared the Resolution duly passed and adopted this 23rd day of August, 2000. ATTEST: Kathryn M. O'Nat ore City Cleric (SEAL) Approved as to form end legally for rel paos r.the Ity of Sebastian only: RESOLUTION NO. R-00-4B CITY OF SEBASTIAN, FLORIDA By, W4 .P Walter Barnes, Mayor Page 1 of 1 h++n•//\AAAAA/ •ihinfcohacfinn nrnhA,c hlinlr /Imaneflienlav aenv9rarha =vaQR.caccinnkav =W1 R /7Ri2nn4 AIRPORT LEASE THIS LEASE, f add entered into this 23rd day of August, 2000, by and between the CIT O `SEB� STI v; m unicipal corporation existing under the laws o the S o Florida, provides for the use of land from the Sebastian Municipal Airport in the operation of the Sebastian Municipal Golf Course, as follows: WITNESSETH: WHEREAS, the CITY is the owner of certain property located in the County of Indian River, Florida; and WHEREAS, the certain property constitutes a portion of the Sebastian Municipal Airport (hereinafter referred to as the "Airport and WHEREAS, the certain property is available for those activities consistent with or in support of aviation activity, and may be leased for nonaviation purposes if a fair value is received from such rental and the funds are dedicated to aviation uses; and WHEREAS, the Landlord has leased a portion of such property from the Airport Enterprise Fund, (hereinafter referred to as the "Landlord for use of the Sebastian Municipal Golf Course (hereinafter referred to as the "Tenant since December 12, 1981; and WHEREAS, the Tenant desires to renew the lease the said property from the Landlord, and to that end and in consideration of the premises, and the covenants, terms and conditions to be performed as set forth hereinnfrer; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, it is decreed as follows: 1. RECITALS. The above stated recitals are hereby incorporated by reference in this Lease Agreement. 2. LEASED PREMISES. Subject to the terms and conditions set forth hereinnf e the Landlord leases hereby to the Tenant and the Tenant rents hereby from the Landlord that portion of the real property of the Landlord which is described more particularly as the Sebastian Municipal Golf Course, as represented on the attached Exhibit "A". As part of the current project to update the Airport Master Plan, Landlord shall commission a survey of the premises described above, which surveyed lands shall constitute 0.1 the actual Leased Premises, and a copy of said survey shall be attached hereto as an Addendum. 3. TERM OF LEASE. The initial term of this Lease shall be for a period of fifteen (15) years commencing October 1, 2000, and will end on September 30, 2015. 4. RENT. The parties agree that the rent, payable by the Tenant, during the term of this Lease shall be as follows: (a) October 1, 2000 through September 30, 2005 $120,000 (b) October I, 2005 through September 30, 2010 $175,000 (c) October 1, 2010 through September 30, 2015 $250,000 The above rental for the leased premises shall be payable in advance, in monthly installments, commencing from the date of commencement of this Lease, as described above and on a like day of every month thereafter during the term of this Lease. In addition to the rental amount, the Tenant shall pay ail applicable taxes arising from this Lease, if any. 5. IMPROVEMENTS TO THE PREMISES. The Tenant shall have the right to use the leased premises for any lawful public purpose, with a primary purpose of operating a municipal golf course with facilities appurtenant thereto, and shall have the right to construct upon the leased premises any buildings or other structures, provided any such buildings or structures do not in any way curtail the use of the airport facilities in their usual operations and provided fiuther that any such buildings or structures are approved, in writing, by the Sebastian City Council and the FAA prior to commencement of any construction. (a) The Tenant covenants and agrees that all such construction shall be in accordance with the local and state codes, regulations and requirements as well as in accordance with all requirements of the Federal Aviation Administration "FAA (b) The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of the construction of any such buildings or structures. (c) All buildings, structures and fixtures of every kind now or hereafter erected or placed on the leased premises shall, at the end of the term or earlier termination of this Lease, for any reason, be and become the property of the Landlord and shall be left in good condition and repair, ordinary wear and damage by the elements excepted. In order to confirm sole ownership in the Landlord, the Tenant shall, at Landlord's request, execute any and all documents of transfer which Landlord deems necessary to perfect title to said improvements. The Tenant agrees that all improvements shall, upon the termination of this Lease for any reason, be free and clear of all encumbrances, liens, andlitle defects of any kind. 6. USE OF LEASED PREMISES. The Tenant agrees that no use of the leased premises will be conducted in such a manner as to constitute a nuisance or a hazard and that, in connection with the use of the leased premises, the Tenant will observe and comply with all applicable laws, ordinances, orders and regulations prescribed by lawful authorities having jurisdiction over the leased premises. 7. REPAIRS AND ALTERATIONS. The Landlord shall not be obligated to maintain or repair the leased premises or any improvements located thereon or any part thereof during the lease term or any renewal thereof. The Tenant agrees, at its sole cost and expense, to maintain all of the improvements, including, but not limited to, buildings (and all parts thereof) and the parking areas located on the leased premises in a good state of maintenance and repair and to keep the Ieased.premises in a clean, neat and orderly condition in accordance with local ordinances, including but not limited to, the Sebastian Land Development Code acid all other community standards ordinances. It is an express condition of this Lease that the leased premises be kept in an attractive manner at all times. Upon obtaining the prior written consent of the Landlord, which consent may not be unreasonably withheld, the Tenant, at its sole cost and expense, may erect such additional improvements on the leased premises as it deems appropriate and may make such alterations or major renovations to the existing improvements as it deems appropriate, provided, however, that such alterations or renovations shall not disturb the structural integrity of such existing improvements, and provided that the alterations or renovations shall comply with all applicable governmental regulations. The Tenant shall indemnify, defend and hold the Landlord harmless from any claims, losses, damages or liens arising out of or in any way connected with such additions or renovations. 3 8. UTILITIES. The Tenant shall be responsible for all costs of electricity, lights, water, sewer, heat, janitor service or any other utility or service consumed in connection with the leased premises. The Landlord shall have no liability for the failure to procure, or the interruption of any such services or utilities. 9. SIGNS. The Tenant shall have the right to erect and maintain such sign or signs on the premises as may be permitted by applicable law; provided, however, the Landlord must approve any such signs in writing prior to erection. The Landlord may impose any reasonable restrictions as, in the sole discretion of the Landlord, are deemed necessary. 10. TAXES. The Tenant shall pay during the Lease term all ad valorem taxes, assessments or any other governmental charge levied or assessed against the Ieased premises (including the Tenant's leasehold by the appropriate governmental authorities), together with all ad valorem taxes assessment or other governmental charge levied against any stock of merchandise, furniture, furnishings, equipment and other property located in, or upon the leased premises. All shall be paid by the Tenant on a timely bass and receipts therefor shall be provided to the Landlord upon request. 11. INSURANCE. In the event that the Tenant's use and occupancy of the premises causes any increase in the premium for any property casualty or fire insurance maintained by Landlord on the Leased Premises or any portion thereof Tenant shall reimburse Landlord for the amount of said increase within thirty days of notice of the same. 12. INDEMNIFICATION. The Tenant agrees hereby to defend, indemnify and save the Landlord harmless from any and all actions, demands, liabilities, claims, losses or litigation arising out of or connected with the Tenant's occupancy or use of the Ieased premises and the use of the leased premises by tenant's agents, employees, and invitees, including all attorney's fees incurred by the Landlord in defending any such claims. This Paragraph shall survive the termination or cancellation of the Lease. 13. ENVIRONMENTAL MATTERS. The Tenant hereby agrees to indemnify, defend and hold the Landlord harmless from and against any and all claims, lawsuits, losses, liabilities, damages, and expenses (including, without limitation, clean -up costs and reasonable attorneys fees) resulting directly or indirectly from, out of or by reason of any hazardous or toxic materials, substances, pollutants, contaminants, petroleum products, hydrocarbons or wastes 4 being located on the property and being caused by the Tenant or its sub Tenants. The presence of said substance or materials on the leased premises shall raise the presumption that Tenant is the cause of such presence. This Paragraph 16 shall survive the termination or cancellation of the Lease. 14. PREVENTION OF USE OF THE PREMISES. If after the effective date of this Lease, the Tenant is precluded or prevented from using the leased premises for those primary purposes identified in this Lease, by reason of any zoning Iaw, ordinance or regulation of any authority having jurisdiction over the leased premises and such prohibition shall continue for a period in excess of ninety (90) consecutive days, the Tenant may terminate this Lease by giving Landlord fifteen days notice in writing. 15. GOVERNMENT SEIZURE. In the event the United States Government, or any agency or subdivision thereof at any time during the term of this Lease takes over the operation or use of the airfield and/or Airport which results in the Tenant being unable to operate under the terms of the Lease, then the Lease may be extended upon mutual agreement of the Tenant and the Landlord for an additional period equal to the time the Tenant has been deprived of the value of this Lease. If the duration of the seizure exceeds ninety (90) consecutive days, either party, at its sole discretion, may terminate this Lease. 16. IDENTITY OF INTEREST. The execution of this Lease or the performance of any act pursuant to the provisions hereof shRil not be deemed or construed to have the effect of creating between the Landlord and the Tenant the relationship of principal and agent or of a partnership or of a joint venture and the relationship between them shall be and remain only that of landlord and tenant. 17. HEIGHT/HAZARD RESTRICTIONS. The Tenant expressly agrees for itself its successors and assigns, to restrict the height of structures, objects of natural growth and other obstructions an the leased premises to such a height so as to comply with all Federal Aviation Regulations, State laws and local ordinances, rules and regulations now existing and hereinafter promulgated. The Tenant expressly agrees for itself its successors and assigns, to prevent any use of the leased premises which would interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an airport hazard. The Tenant covenants 5 and acknowledges that the use of the leased premises as proposed by the Tenant does not interfere with or adversely affect the operation or maintenance of the Airport or otherwise constitute an Airport hazard. The Landlord reserves unto itself; its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the leased premises, together with the right to cause in such airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation or flight in the airspace, and for use of said airspace for landing on, taking off from, or operating on the Airport 18. NONDISCRIMINATION The Tenant for itself; its personal representatives, successors in interest and assigns, as part of the consideration hereof; does hereby covenant and agree as a covenant running with the land that (i) no person on the grounds of religion, gender, marital status, race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of the Tenant's facilities; (ii) that in the construction of any improvements on, over or under the leased premises and the furnishing of services thereon, no person on the grounds of religion, gender, marital status, race, color or national origin shall be excluded from participation in, denied the benefits of; or otherwise be subjected to discrimination; (iii) that the Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964. In the event of the breach of any of the above non discrimination covenants, the Landlord shall promptly notify the Tenant, in writing, of such breach and the Tenant shall immediately commence curative action. Such action by the Tenant shall be diligently pursued to its conclusion, and if the Tenant shall then fail to commence or diligently pursue action to cure said breach, the Landlord shall then have the right to terminate this Lease and to re -enter and repossess said land and improvements thereon. 19. ASSIGNMENT AND SUBLETTING. The Tenant shall not assign this Lease or sublet the leased premises or any portion thereof'; or otherwise transfer any right or interest hereunder without the prior written consent of the Landlord, which consent may not be 6 unreasonably withheld. If the Landlord consents, in writing, to the assignment, subletting or other transfer of any right or interest hereunder by the Tenant, such approval shall be limited to the particular instance specified in the written consent and the Tenant shall not be relieved of any duty, obligation or liability under the provisions of its Lease. 20. B]NDING EFFECT. The terms and provisions of this Lease shall be binding on the parties hereto and their respective heirs, successors, assigns and personal representatives, and the terms of any Addendum attached hereto are incorporated herein. It is acknowledged that the validity of said lease is subject to its approval by the Federal Aviation Administration. The Tenant acknowledges that the Landlord is required by law to operate under an Airport Master Plan and the Tenant covenants that he will use the leased premises consistent with the Airport Master Plan. 21. ENTIRE AGREEMENT. This Lease contains all of the understandings by and between the parties hereto relative to the Ieasing of the premises herein described, and all prior or contemporaneous agreements relative thereto have been merged herein or are voided by this instrument, which may be amended, modified, altered, changed, revoked or rescinded in whole or in part only by an instrument in writing signed by each of the parties hereto. APPROVED by the City at its regular meeting on the day and year first above written. Approved as to Form and Legality for Reliance by the City of Sebastian only: Rich Stringer, City orney CITY OF SEBASTIAN A Munici al Corporat'on enceL'M &ore, City Manager 7 leav UMW tr Iv oo a loo so 1:1=1:1=1:12121:10C O.Olam Q r nn Eau DO 00 D O nO, Oio, O13 i aaa= o0 on o n �i O nu nn ao aao o O O 6ns' lain oo� an a.o n mazi QQ P nn on airs ma f∎ V 1251"4321:112 Q a me O 0 O° on 1301310:11:11=11:11 O Q ma 00 IMO VMS 00 00 os nn on X 9 150 27 ct>vi C'C NO WIC DD 00C Ot7 C�CG an NO CCU BIM a�` u TRACT 4