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HomeMy WebLinkAbout05192014BAC MinutesCRY OF Vks-TLA HOME OF PELICAN ISLAND CITIZENS BUDGET REVIEW ADVISORY BOARD MINUTES 6:00 P.M. MONDAY — MAY 19, 2014 CITY COUNCIL CHAMBER, 1225 MAIN STREET, SEBASTIAN Chairman Herlihy called the meeting to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. PRESENT: Ed Herlihy — Chair Dionna Farmer — Vice Chair Bill Flaherty Bruce Hoffman Tim Slaven Christine Vicars NOT PRESENT. Gary O'Hara (excused) ALSO PRESENT: Deb Krueger, Administrative Services Director Ken Killgore, Finance Director Jeanette Williams, Recording Secretary 4. APPROVAL OF MINUTES: A. MEETING OF MARCH 3, 2014 MOTION by Mr. Hoffman with a SECOND by Ms. Farmer to approve the March 3, 2014 minutes passed with a voice vote of 6 -0. 5. REVIEW OF FY2014 SECOND QUARTER FINANCIAL REPORT The Finance Director summarized the budget adjustments, noting the Presidential Streets project and Airport Hangar C project show up in different categories of the budget amendment. The fund categories and departments are on target for the midway point of the fiscal year. Citizens Budget Review Advisory Committee May 19, 2014 Page Two In response to questions of the board members, the Finance Director explained that the stormwater fund revenues came in at 89% while the general fund tax revenues came in at 64% because the general fund tax line item includes property tax, franchises fees, and utility taxes. The computer upgrade expense is noted in the DST line as a project so the minimal 34% spent in the MIS line is due to an unfilled position. The same situation applies to the unfilled Facilities Maintenance position. He further explained when the debt service was refinanced at the beginning of the fiscal year, it was decided to move up a year of payment with the previously required reserve amount so this shows as a $2M expenditure but only $1M was budgeted. (The reserve amount was not required with the refinancing.) He said he would fix the error on the quarterly investment report, where the total cash in investment was listed as $16,187,000 and should be $12,956,000. It was noted the younger generation is not playing golf and that should be considered with the Golf Course. 6:16 pm To help the board members determine if department goals are achieved and if a reasonable price is paid for their items, members requested dollar amounts for the various tasks listed on their reports. The Finance Director said the departments would try to tie the numbers together. He explained that any remaining DST funds after 2019 would first be used to complete the identified Stormwater and capital improvement projects and remain until it is spent. He pointed out City Manager Griffin did ask the department to finish the projects that have been started and try to limit new projects. Chairman Herlihy confirmed City Manager Griffin's directive to finish up the 35 -40 projects currently running; noted there is $460,000 of excess revenue earmarked for capital equipment; and reminded them there will also be a future revenue source to look forward to with the completion of the City Hall note. MOTION by Chairman Herlihy and SECOND by Ms. Farmer to accept R -14 -09 as presented passed with a voice vote of 6 -0. 6. GENERAL FUND RESERVE PRESENTATION — FINANCE DIRECTOR The Finance Director compared the need for reserve to acquiring insurance- -how much should you buy - -how much is enough; and he presented PowerPoint presentation. (see attached) He explained that the City's policy is to have 30% of the operating budget in reserve which would be about $3M and there is currently about $5M. Citizens Budget Review Advisory Committee May 1Q.2O14 Page Three 6:51 pm Using different hurricane categories that might hit during different times of the year, he presented estimates that would affect the reserve fund. He pointed out that while the majority Ofthe expenses may be reimbursed, there will beawaiting pehod;\he|ossufpropertvwj||dineot|yimpaotthoDextaSmesmedy*ar�andthe repairs and replaced appliances would spike building fees and sales tax for a short period. In their deliberations, he advised that there should be m plan to recover any reserve depletion. Discussion followed on when to consider the decline in revenue stream, i.e. when values are announced bv the property appraiser Orat time ofcollection. The Finance Director said he considered whether properties are mortgaged. Mr. Hoffman asked if there was a way 10 determine the number Ofmortgaged properties. The Finance Director cautioned during the recovery there might be unrelated repairs or expenditures for example if the community decides to build and maintain quiet zones for All Aboard Florida that would exhaust the current reserve. He said just depending on the event and what City leaders think, the reserve could be replenished with a legal reallocation of funds, special millage increase or fee surcharge. He recommended leaving the current reserve at the $5M level. He also recommended a reserve level set atmn amount rather than o percentage because percentages drop during bad times. Mr. Hoffman pointed out with the 30% reserve ten years ago. the City was about a half million short and asked if the percentage should be increased since prices have gone up. The Finance Director said maybe given the examples Onhis spread sheets. Mr. Flaherty asked if they could find out what other communities are considering. K8o Farmer said since the current reserve of $51M is within our comfort zone. would a policy increase tO50Y6bepossible. Chairman Herlihy asked the board's thoughts on recommending a change tO City Council. The Finance Director said it could ba part of the fall budget presentation for Council. Ms. Vicars and Chairman Herlihy pointed out the reserve could be needed for other disasters as vva||, such as a fire or train derailment. Mr. Flaherty cautioned something will have tnbe given upto get the increased 5O9& K8[ Hoffman suggested increasing the percent in steps over five years so the excess reserve isn't depleted. Chairman Herlihy asked the board to think about this and they will talk about itotafuture meeting. The Finance Director offered to supply his spread sheet scenarios for anyone that might bainterested. Citizens Budget Review Advisory Committee May 19, 2014 Page Four 7. OTHER DISCUSSION/QUESTIONS BY COMMITTEE MEMBERS Chairman Herlihy reminded everyone of the next meeting to discuss budget recommendations, Monday, June 2 "d. The Finance Director said the rough estimates will be available that day from the property appraiser. Chairman Herlihy said former City Manager Minner's budget projections include a 3% increase for next year and reminded them that the valuation is through December 2013; there won't be new capital projects; and they will see a 3% salary increase for general employees. 8. PUBLIC INPUT — None. 9. Being no further business, Chairman Herlihy adjourned the Citizens Budget Review Advisory Board meeting at 7:15 p.m. By: ( >% Chairman Ed 4erlihy Dat (1) U C (B (O m a� L U1 (B U r-6-' 0) O W W .-J rum V 3: 0 z i a� a� i ru U L .-J L Q� MI 4— O c �- � d' � M 4-J -�- i O E O L N � I � Q o O X U w ca L M Ocy) O a� o CY) O N O- M • I � L U � .- O -0 >1 O • — >C U w 4-d c� L O� 4. N O Ln Q0 o p r*-N *A% . 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M U L. O 4� L W a-j 4� O U V) �J cry O a-J re [6 U N 3: U 3 4-j : M� 0 Cn � � f0 O L 'n O N CY O W L• W p Cn O ca 4-J O — (3) O > 4-J W � --d � ro Q� _0 (L) �o r- rw) =3 N . i cam ru ca CL a� o (, r y— 4) -0 Cn ca O ru L L a-j 4� O U V) �J cry O a-J re [6 U N 3: U 3 4-j : M� 0 Cn � � f0 O L 'n O N CY O Supporting Calculations • List of assumptions made for revenues and expenditures • Storm Scenario Chart summarizing the results by month and various loss rates • Copies of selected spreadsheets from model formatted to calculate different aSSU111ptIOC1S (December @ 30% vs. 50 %, September @ 30% vs. 50 %) Storm Scenario Chart • October to December Event — Could handle 15% damage and an equivalent 2nd event. A single event of up to 30% damage could be handled. • January to March Event — Could handle 20% damage and an equivalent 2nd event. A single event of up to 45% damage could be handled. • April to September Event — Could handle 20% damage and an equivalent 2nd event. A single event Of up to 40% damage could be handled. Observations Events in October to December would be most detrimental (tax values would be reduced the very next fiscal year). Depletion of cash reserves is primarily due to revenue losses, as most expenditures would be recovered. Depletion of cash reserves would happen over several years, allowing mitigating actions, such as deferred maintenance, vacancies by employee attrition, emergency loans, special millage increases or fee surcharges. ® Current $5 million level is reasonable to handle immediate cash needs but then a program will be needed to restore that level before the next event. City of Sebastian Effects of City -Wide Damage Scenario Assumptions Revenues: Property Taxes Fully collected in Loss Year; Incur the Loss Rate the 1st Year After; 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5 - if loss is after 3rd month - if before 3rd month rebuilding delayed by a year. Franchise Fees Loss of customers at Loss Rate for remaining months of Loss Year; 60 %, 75 %, 90% and 100% Rebuilding Rate after each 12 month period. Utility Service Tax Same Rebuilding Rate as Franchise Fees. Intergovernmental Spike of 18% for 12 months after event. Licenses /Permits Fully collected in Loss Year; Incur the Loss Rate the 1st Year After; 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5. Charges Loss of customers at Loss Rate for remaining months of Loss Year on 15% of charges (recreation facility user fees) in Loss Year; 60 %, 75 %, 90% and 100% rebuilding in 1st, 2nd, 3rd and 4th Years After. Other Revenue Same Rebuilding Rate as property taxes. Transfers In Stormwater Transfer reduced at Loss Rate for remaining months in Loss Year; 60 %, 75 %, 90% and 100% Rebuild Rate in 1st, 2nd, 3rd and 4th Years After. $65,000 Transfer from Building Department ends after 3rd year. Expenditures: Current Operating Expense Budget Assuming no increases in annual budgets. Extra Police Overtime 10% increase in monthly payroll for the first 6 months, then 5% for the next 6 months. FEMA/STATE 75112.5% reimbursement after 1 years. Extra Public Works Overtime Same as Extra Police Overtime. Debris Removal Assuming Loss Rate on $2,000,000 base cost, work done over six months and FEMA/STATE 75/12.5% Reimbursement after 1 Year. Facilities Replacement or Repair - Engineering Engineering and design to repair or replace the $11,000,000 base cost of City Hall, Police Station, Community Center and Chamber Buildings at the Loss Rate. Engineering and design at 10% of cost over 6 months. FEMA 75% Reimbursement in 1 Year. Facilities Replacement or Repair - Construction Construction cost to repair or replace the $27,750,000 base cost of City Buildings at the Loss Rate. Construction at 60 %, 75 %, 90% and 100% rebuilt in 2nd, 3rd, 4th and 5th Years After. Insurance Reimbursement, net of $1,175,000 Deductibles on 47 Buildings within 6 months. FEMA 75% Reimbursement in 1 year. Reduction in Insurance Premiums Premiums would be reduced by the Loss Rate the 1st Year After; Then 60 %, 75% and 90% of normal in 3rd, 4th and 5th Year After. Reduction in Utilities and Building Maintenance Electric and Water usage would be reduced by the Loss Rate for the first 6 months, then 112 the Loss Rate for the next 6 months, then 1/4 the Loss Rate for the next 6 months. Storm Scenario - Chart Each Month With Variable Degrees of Damages Reserves Used = Able to handle an equivalent second event. Reserves Remaining = Able to handle one event at stated loss rate. Percent Remaining = Not able to handle an event at stated loss rate. Loss Rate 15% 20% 25% 30% 35% 40% 45% 50% October 2,126,011 2,955,568 3,785,124 1,280,118 4,614,681 450,561 5,444,238 6,273,794 7,103,351 7,932,908 2,939,231 2,109,674 (378,996) (1,2.08,552) (2,038,109) -20% (2,867,666) -29% 29% 21% 13% 5% -4% -12% 2,164,373 3,006,718 3,849,062 4,691,406 5,533,750 6,376,094 7,218,439 8,060,783 November 2,900,869 2,058,524 1,216,180 373,836 (468,508) (1,310,852) (2,153,197) (2,995,541) 29% 21% 12% 4% -5% -13% -22% -30% 2,202,736 3,057,868 3,912,999 4,768,131 5,623,263 6,478,394 7,333,526 8,188,658 December 2,862,506 2,007,374 1,152,243 297,111 (558,021) (1,413,152) (2,268,284) (3,123,416) 29% 20% 12% 3% -6 % -14% -23% -31% 1,362,626 1,937,722 2,512,817 3,087,912 3,663,007 4,238,102 4,813,198 5,388,293 January 3,702,616 3,127,520 2,512,425 1,977,330 1,402,235 827,140 252,044 (323,051) 37% 31% 26% 20 % 14% 8% 3% -3% 1,400,989 1,988,872 2,576,754 3,164,637 3,752,520 4,340,402 4,928,285 5,546,168 February 3,664,253 3,076,370 2,488,488 1,900,605 1,312,722 724,840 136,957 (450,926) 37% 31% 25% 19% 13% 7% 1% -5% 1,439,351 2,040,022 2,640,692 3,241,362 3,842,032 4,442,702 5,043,373 5,644,043 March 3,625,891 3,025,220 2,424,550 1,823,880 1,223,210 622,540 21,869 (578,801) 36% 30% 24% 18% 12% 6% 0% -6% April 1,477,714 2,091,172 2,704,629 3,318,087 3,931,545 4,545,002 5,158,460 5,771,918 3,587,528 2,974,070 2,360,613 1,747,155 1,133,697 520,240 (93,218) -1% (70.6_,676) -7% 36% 30% 24% 18% 11% 5% 1,516,076 2,142,322 2,768,567 3,394,812 4,021,057 4,647,302 5,273,548 5,899,793 May 3,549,166 2,922,920 2,296,675 1,670,430 1,044,185 417,940 (208,306) (834,551) 36% 29% 23% 17% 10% 4% -2% -8% June 1,554,439 2,193,472 2,832,504 3,471,537 4,110,570 4,749,602 5,388,635 6,027,668 3,510,803 2,871,770 2,232,738 1,593,705 954,672 315,640 (323,393) (962,426) 35% 29% 22% 16% 10% 3% -3% -10% 1,592,801 2,244,622 2,896,442 3,548,262 4,200,082 4,851,902 5,503,723 6,155,543 July 3,472,441 2,820,620 2,168,800 1,516,980 865,160 213,340 (438,481) (1,090,301) 35% 28% 22% 15% 9% 2% -4 % -11% 1,631,164 2,295,772 2,960,379 3,624,987 4,289,595 4,954,202 5,618,810 6,283,418 August 3,434,078 2,769,470 2,104,863 1,440,255 775,647 111,040 (553,568) (1,218,176) 34% 28% 21% 14% 8% 1 % -6% -12% 1,669,526 2,346,922 3,024,317 3,701,712 4,379,107 5,056,502 5,733,898 6,411,293 September 3,395,716 2,718,320 2,040,925 1,363,530 686,135 8,740 (668,656) (1,346,051) 34% 27% 20% 14% 70%/. 0% -7% -13% GENERAL FUND RESERVES PROJECTED BALANCES FISCAL YEARS AFTER EVENT BASED ON LOSS RATE 30.00% Loss Rate EVENT OCCURING IN: DECEMBER GENERAL FUND REVENUE $ Current Budget Year of Loss 1st Year After Loss 2nd Year After Loss 3rd Year After Loss 4th Year After Loss 5th Year After Loss Remarks Property Taxes $ 2,928,240 $ 2,928,240 $ 2,049,768 $ 2,049,768 $ 2,576,851 $ 2,708,622 $ 2,840,393 Fully collected in Loss Year; Incur the Loss Rate the 1st Year After; 60 %, 75 %, 90% and (43,405) - months. FEMA/STATE 75/12.5% reimbursement after 2 years. Extra Public Works Overtime 142,136 28,427 - Same as Extra Police Overtime. FEMA/STATE Reimbursements 100% Rebuilding Rate in Years 2, 3, 4 and 5 - if loss is after 3rd month - if before 3rd (124,369) (24,874) - - - Debns Removal 600,000 - Assuming Loss Rate on $2,000,000 base cost, work done over six months and month rebuilding delayed by a year. Franchise Fees 1,143,000 885,825 954,405 1,044,416 1,095,851 1,134,428 1,143,000 Loss of customers at Loss Rate for remaining months of Loss Year 60 %, 75 %, 90% and FEMA/STATE Reimbursements 9,980,644 (728,438) - Buildings at the Loss Rate. Engineering and design at 10% of cost over 6 months. $ 8,600,266 $ 5,465,932 $ 3,025,583 100% Rebuilding Rate after each 12 month period. Utility Service Tax 2,507,000 1,942,925 2,093,345 2,229,391 2,326,861 2,396,128 2,507,000 Same Rebuilding Rate as Franchise Fees. Intergovernmental 2,045,300 2,321,416 2,137,339 2,045,300 2,045,300 2,045,300 2,045,300 Spike of 18% for 12 months after event. Licenses /Permits 149,050 149,050 $ 104,335 $ 131,164 $ 137,871 $ 144,579 $ 149,050 Fully collected in Loss Year, Incur the Loss Rate the 1st Year After; 60 %, 75 %, 90% and 86% 55% 30% 13% 4% 3% 100% Rebuilding Rate in Years 2, 3, 4 and 5. Charges 373,556 360,948 364,310 368,723 371,245 373,136 373,556 Loss of customers at Loss Rate for remaining months of Loss Year on 15% of charges (recreation facility user fees) in Loss Year; 60 %, 75 %, 90% and 100% rebuilding in 1st, 2nd, 3rd and 4th Years After. Other Revenue 283,250 283,250 $ 198,275 $ 249,260 $ 262,006 $ 274,753 $ 283,250 Same Rebuilding Rate as property taxes. Transfers In 630,748 518,248 548,248 587,623 610,123 561,888 565,638 Stormwater Transfer reduced at Loss Rate for remaining months in Loss Year 60 %, 75 %, 90% and 100% Rebuild Rate in 1st, 2nd, 3rd and 4th Years After. $65,000 Transfer from Building Department ends after 3rd year. GENERAL FUND REVENUE $ 10,060,144 $ 9,389,902 $ 8,450,025 $ 8,705,646 $ 9,426,109 $ 9,638,832 $ 9,907,187 Current Operating Expense Budget $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 Assuming no increases in annual budgets. Extra Police Overtime 248,030 49,606 - 10% increase in monthly payroll for the first 6 months, then 5% for the next 6 FEMA/STATE Reimbursements Reduction in Utilities and Building Maintenance (217,026) (43,405) - months. FEMA/STATE 75/12.5% reimbursement after 2 years. Extra Public Works Overtime 142,136 28,427 - Same as Extra Police Overtime. FEMA/STATE Reimbursements (124,369) (24,874) - - - Debns Removal 600,000 - Assuming Loss Rate on $2,000,000 base cost, work done over six months and FEMA/STATE Reimbursements (525,000) FEMA/STATE 75/12.5% Reimbursement after 1 year. Facilities Replacement or Repair - Engineering 832,500 $ 11,584,359 $ 11,145,995 $ Engineering and design to repair or replace the $27,750,000 insured cost of City FEMA/STATE Reimbursements 9,980,644 (728,438) - Buildings at the Loss Rate. Engineering and design at 10% of cost over 6 months. $ 8,600,266 $ 5,465,932 $ 3,025,583 $ 1,335,810 $ FEMA 75% Reimbursement in 1 year. Facilities Replacement or Repair- Construction 1,248,750 4,058,438 1,248,750 1,144,688 624,375 Construction cost to repair or replace the $27,750,000 base cost of City Buildings 9,426,109 9,638,832 9,907,187 at the Loss Rate. Construction at 60 %, 75 %, 90% and 100% rebuilt in 2nd, 3rd, FEMA/STATE Reimbursements (14,060,442) (881,250) (11,115,882) 4th and 5th Years After. Insurance Reimbursement, net of $1,175,000 Deductibles Property Insurance Reimbursements (7,150,000) Reserve Fund Ending Balances $ 8,600,266 on 47 Buildings within 6 months. FEMA 75% Reimbursement in 1 year. Reduction in Insurance Premiums (37,800) (15,120) (9,450) (945) Premiums would be reduced by the Loss Rate the 1st Year After; Then 60 %, 75% and 90% of normal in 3rd, 4th and 5th Year After. Reduction in Utilities and Building Maintenance (47,183) (18,873) - Electric and Water usage would be reduced by the Loss Rate for the first 6 months, then 1/2 the Loss Rate for the next 6 months, then 1/4 the Loss Rate for the next 6 months. GENERAL FUND EXPENDITURES $ 9,980,644 $ 5,854,878 $ 11,584,359 $ 11,145,995 $ 11,115,882 $ 10,604,074 $ 9,980,644 Reserve Fund Beginning Balances $ 5,065,242 $ 8,600,266 $ 5,465,932 $ 3,025,583 $ 1,335,810 $ 370,568 Revenues 16,539,902 10,926,108 8,773,925 9,426,109 9,638,832 9,907,187 Expenditures (13,004,878) (14,060,442) (11,214,274) (11,115,882) (10,604,074) (9,980,644) Reserve Fund Ending Balances $ 8,600,266 $ 5,465,932 $ 3,025,583 $ 1,335,810 $ 370,568 $ 297,111 Reserve Balance as % of Current Budget 86% 55% 30% 13% 4% 3% GENERAL FUND RESERVES PROJECTED BALANCES FISCAL YEARS AFTER EVENT BASED ON LOSS RATE 50.00% Loss Rate EVENT OCCURING IN: DECEMBER 1st Year 2nd Year 3rd Year 4th Year 5th Year Current Year of After After After After After Budget Loss Loss Loss Loss Loss Loss Remarks Property Taxes $ 2,928,240 $ 2,928,240 $ 1,464,120 $ 1,464,120 $ 2,342,592 $ 2,562,210 $ 2,781,828 Fully collected in Loss Year, Incur the Loss Rate the 1st Year After; 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5 - if loss is after 3rd month - if before 3rd month rebuilding delayed by a year. Franchise Fees 1,143,000 714,375 828,675 978,694 1,064,419 1,128,713 1,143,000 Loss of customers at Loss Rate for remaining months of Loss Year; 60 %, 75 %, 90% and 100% Rebuilding Rate after each 12 month period. Utility Service Tax 2,507,000 1,566,875 1,817,575 2,044,319 2,206,769 2,322,213 2,507,000 Same Rebuilding Rate as Franchise Fees. Intergovernmental 2,045,300 2,321,416 2,137,339 2,045,300 2,045,300 2,045,300 2,045,300 Spike of 18% for 12 months after event. Licenses /Permits 149,050 149,050 $ 74,525 $ 119,240 $ 130,419 $ 141,598 $ 149,050 Fully collected in Loss Year; Incur the Loss Rate the 1st Year After, 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5. Charges 373,556 352,543 358,147 365,501 369,704 372,856 373,556 Loss of customers at Loss Rate for remaining months of Loss Year on 15% of charges (recreation facility user fees) in Loss Year, 60 %, 75 %, 90% and 100% rebuilding in 1st, 2nd, 3rd and 4th Years After. Other Revenue 283,250 283,250 $ 141,625 $ 226,600 $ 247,844 $ 269,088 $ 283,250 Same Rebuilding Rate as property taxes. Transfers In 630,748 443,248 493,248 558,873 596,373 559,388 565,638 Stormwater Transfer reduced at Loss Rate for remaining months in Loss Year; 60 %, 75 %, 90% and 100% Rebuild Rate in 1st, 2nd, 3rd and 4th Years After. $65,000 Transfer from Building Department ends after 3rd year. GENERAL FUND REVENUE $ 10,060,144 $ 8,758,997 $ 7,315,253 $ 7,802,647 $ 9,003,419 $ 9,401,364 $ 9,848,622 Current Operating Expense Budget $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 Assuming no increases in annual budgets. Extra Police Overtime 248,030 49,606 - 10% increase in monthly payroll for the first 6 months, then 5% for the next 6 FEMA /STATE Reimbursements (217,026) (43,405) - _ months. FEMA /STATE 75/12.5% reimbursement after 2 years. Extra Public Works Overtime 142,136 28,427 - Same as Extra Police Overtime. FEMA /STATE Reimbursements (124,369) (24,874) - - Debris Removal 1,000,000 Assuming Loss Rate on $2,000,000 base cost, work done over six months and FEMA /STATE Reimbursements (875,000) - FEMA /STATE 75/12.5% Reimbursement after 1 year. Facilities Replacement or Repair - Engineering 1,387,500 Engineering and design to repair or replace the $27,750,000 insured cost of City FEMA /STATE Reimbursements (1,214,063) - Buildings at the Loss Rate. Engineering and design at 10% of cost over 6 months. FEMA 75% Reimbursement in 1 year. Facilities Replacement or Repair- Construction 2,081,250 6,764,063 2,081,250 1,907,813 1,040,625 _ Construction cost to repair or replace the $27,750,000 base cost of City Buildings FEMA /STATE Reimbursements (881,250) at the Loss Rate. Construction at 60 %, 75 %, 90% and 100% rebuilt in 2nd, 3rd, 4th and 5th Years After. Insurance Reimbursement, net of $1,175,000 Deductibles Property Insurance Reimbursements (12,700,000) on 47 Buildings within 6 months. FEMA 75% Reimbursement in 1 year. Reduction in Insurance Premiums (63,000) (25,200) (15,750) (1,575) Premiums would be reduced by the Loss Rate the 1st Year After; Then 60 %, 75% and 90% of normal in 3rd, 4th and 5th Year After. Reduction in Utilities and Building Maintenance (78,638) (31,455) - Electric and Water usage would be reduced by the Loss Rate for the first 6 months, then 1/2 the Loss Rate for the next 6 months, then 1/4 the Loss Rate for the next 6 months. GENERAL FUND EXPENDITURES $ 9,980,644 $ 2,060,923 $ 13,416,577 $ 11,968,415 $ 11,872,707 $ 11,019,694 $ 9,980,644 Reserve Fund Beginning Balances $ 5,065,242 $ 11,763,316 $ 5,661,993 $ 1,496,225 $ (1,373,063) $ (2,991,394) Revenues 21,458,997 10,626,961 7,870,926 9,003,419 9,401,364 9,848,622 Expenditures (14,760,923) (16,728,285) (12,036,694) (11,872,707) (11,019,694) (9,980,644) Reserve Fund Ending Balances $ 11,763,316 $ 5,661,993 $ 1,496,225 $ (1,373,063) $ (2,991,394) $ (3,123,416) Reserve Balance as % of Current Budget 118% 57% 15% -14% -30% -31% GENERAL FUND RESERVES PROJECTED BALANCES FISCAL YEARS AFTER EVENT BASED ON LOSS RATE 30.00% Loss Rate EVENT OCCURING IN: SEPTEMBER 1st Year 2nd Year 3rd Year 4th Year 5th Year Current Year of After After After After After Budget Loss Loss Loss Loss Loss Loss Remarks Property Taxes $ 2,928,240 $ 2,928,240 $ 2,928,240 $ 2,576,851 $ 2,708,622 $ 2,840,393 $ 2,928,240 Fully collected in Loss Year; Incur the Loss Rate the 1st Year After; 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5 - if loss is after 3rd month - if before 3rd month rebuilding delayed by a year. Franchise Fees 1,143,000 1,143,000 800,100 1,005,840 1,057,275 1,108,710 1,143,000 Loss of customers at Loss Rate for remaining months of Loss Year 60 %, 75 %, 90% and 100% Rebuilding Rate after each 12 month period. Utility Service Tax 2,507,000 2,507,000 1,754,900 1,960,640 2,012,075 2,063,510 2,507,000 Same Rebuilding Rate as Franchise Fees. Intergovernmental 2,045,300 2,045,300 2,413,454 2,045,300 2,045,300 2,045,300 2,045,300 Spike of 18% for 12 months after event. Licenses /Permits 149,050 149,050 $ 104,335 $ 131,164 $ 137,871 $ 144,579 $ 149,050 Fully collected in Loss Year; Incur the Loss Rate the 1st Year After, 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5. Charges 373,556 373,556 356,746 366,832 369,353 371,875 373,556 Loss of customers at Loss Rate for remaining months of Loss Year on 15% of charges (recreation facility user fees) in Loss Year, 60 %, 75 %, 90% and 100% rebuilding in 1st, 2nd, 3rd and 4th Years After. Other Revenue 283,250 283,250 $ 198,275 $ 249,260 $ 262,005 $ 274,753 $ 283,250 Same Rebuilding Rate as property taxes. Transfers In 630,748 630,748 480,748 570,748 593,248 550,638 565,638 Stormwater Transfer reduced at Loss Rate for remaining months in Loss Year; 60 %, 75 %, 90% and 100% Rebuild Rate in 1st, 2nd, 3rd and 4th Years After. $65,000 Transfer from Building Department ends after 3rd year. GENERAL FUND REVENUE $ 10,060,144 $ 10,060,144 $ 9,036,798 $ 8,906,635 $ 9,185,751 $ 9,399,757 $ 9,995,034 Current Operating Expense Budget $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 Assuming no increases in annual budgets. Extra Police Overtime - 297,636 - 10% increase in monthly payroll for the first 6 months, then 5% for the next 6 FEMA/STATE Reimbursements - (260,432) - - months. FEMA/STATE 75/12.5% reimbursement after 2 years. Extra Public works Overtime 170,563 Same as Extra Police Overtime. FEMA/STATE Reimbursements - (149,243) - - Debris Removal 600,000 Assuming Loss Rate on $2,000,000 base cost, work done over six months and FEMA/STATE Reimbursements - (525,000) FEMA/STATE 75/12.5% Reimbursement after 1 year. Facilities Replacement or Repair - Engineering 832,500 Engineering and design to repair or replace the $27,750,000 insured cost of City FEMA/STATE Reimbursements - (728,438) Buildings at the Loss Rate. Engineering and design at 10% of cost over 6 months. FIRMA 75% Reimbursement in 1 year. Facilities Replacement or Repair - Construction 2,497,500 3,121,875 1,248,750 1,040,625 416,250 Construction cost to repair or replace the $27,750,000 base cost of City Buildings FEMA/STATE Reimbursements (881,250) at the Loss Rate. Construction at 60 %, 75 %, 90% and 100% rebuilt in 2nd, 3rd, 4th and 5th Years After. Insurance Reimbursement, net of $1,175,000 Deductibles Property Insurance Reimbursements (7,150,000) on 47 Buildings within 6 months. FEMA 75% Reimbursement in 1 year.. Reduction in Insurance Premiums (37,800) (15,120) (9,450) (945) Premiums would be reduced by the Loss Rate the 1st Year After; Then 60 %, 75% and 90% of normal in 3rd, 4th and 5th Year After. Reduction in Utilities and Building Maintenance - (56,619) (9,437) Electric and Water usage would be reduced by the Loss Rate for the first 6 months, then 1/2 the Loss Rate for the next 6 months, then 1/4 the Loss Rate for the next 6 months. GENERAL FUND EXPENDITURES $ 9,980,644 $ 9,980,644 $ 6,253,175 $ 11,414,850 $ 11,219,944 $ 11,020,324 $ 10,396,894 Reserve Fund Beginning Balances $ 5,065,242 $ 5,144,742 $ 7,928,365 $ 5,420,150 $ 3,385,957 $ 1,765,390 Revenues 10,060,144 17,068,048 10,569,747 9,185,751 9,399,757 9,995,034 Expenditures (9,980,644) (14,284,425) (13,077,963) (11,219,944) (11,020,324) (10,396,894) Reserve Fund Ending Balances $ 5,144,742 $ 7,928,365 $ 5,420,150 $ 3,385,957 $ 1,765,390 $ 1,363,530 Reserve Balance as % of Current Budget 52% 79% 64^/ 34% 18% 14% GENERAL FUND RESERVES PROJECTED BALANCES FISCAL YEARS AFTER EVENT BASED ON LOSS RATE 50.00% Loss Rate EVENT OCCURING IN: SEPTEMBER 1st Year 2nd Year 3rd Year 4th Year 5th Year Current Year of After After After After After Budget Loss Loss Loss Loss Loss Loss Remarks Property Taxes $ 2,928,240 $ 2,928,240 $ 2,928,240 $ 2,342,592 $ 2,562,210 $ 2,781,828 $ 2,928,240 Fully collected in Loss Year, Incur the Loss Rate the 1st Year After; 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5 - if loss is after 3rd month - if before 3rd month rebuilding delayed by a year. Franchise Fees 1,143,000 1,143,000 571,500 914,400 1,000,125 1,085,850 1,143,000 Loss of customers at Loss Rate for remaining months of Loss Year; 60 %, 75 %, 90% and 100% Rebuilding Rate after each 12 month period. Utility Service Tax 2,507,000 2,507,000 1,253,500 1,596,400 1,682,125 1,767,850 2,507,000 Same Rebuilding Rate as Franchise Fees. Intergovernmental 2,045,300 2,045,300 2,413,454 2,045,300 2,045,300 2,045,300 2,045,300 Spike of 18% for 12 months after event. Licenses /Permits 149,050 149,050 $ 74,525 $ 119,240 $ 130,419 $ 141,598 $ 149,050 Fully collected in Loss Year, Incur the Loss Rate the 1st Year After, 60 %, 75 %, 90% and 100% Rebuilding Rate in Years 2, 3, 4 and 5. Charges 373,556 373,556 345,539 362,349 366,552 370,754 373,556 Loss of customers at Loss Rate for remaining months of Loss Year on 15% of charges (recreation facility user fees) in Lass Year, 60 %, 75 %, 90% and 100% rebuilding in 1st, 2nd, 3rd and 4th Years After. Other Revenue 283,250 283,250 $ 141,625 $ 226,600 $ 247,844 $ 269,088 $ 283,250 Same Rebuilding Rate as property taxes. Transfers In 630,748 630,748 380,748 530,748 568,248 540,638 565,638 Stormwater Transfer reduced at Loss Rate for remaining months in Loss Year; 60 %, 75 %, 90% and 100% Rebuild Rate in 1st, 2nd, 3rd and 4th Years After. $65,000 Transfer from Building Department ends after 3rd year. GENERAL FUND REVENUE $ 10,060,144 $ 10,060,144 $ 8,109,131 $ 8,137,629 $ 8,602,822 $ 9,002,905 $ 9,995,034 Current Operating Expense Budget $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 $ 9,980,644 Assuming no increases in annual budgets. Extra Police Overtime - 297,636 10% increase in monthly payroll for the first 6 months, then 5% for the next 6 FEMA/STATE Reimbursements - (260,432) - - months. FEMA/STATE 75/12.5% reimbursement after 2 years. Extra Public Works Overtime 170,563 Same as Extra Police Overtime. FEMA/STATE Reimbursements - (149,243) Debris Removal 1,000,000 Assuming Loss Rate on $2,000,000 base cost, work done over six months and FEMA/STATE Reimbursements - (875,000) FEMA/STATE 75/12.5% Reimbursement after 1 year. Facilities Replacement or Repair - Engineering 1,387,500 Engineering and design to repair or replace the $27,750,000 insured cost of City FEMA/STATE Reimbursements - (1,214,063) Buildings at the Loss Rate. Engineering and design at 10% of cost over 6 months. FEMA 75% Reimbursement in 1 year. Facilities Replacement or Repair - Construction - 4,162,500 5,203,125 2,081,250 1,734,375 693,750 Construction Cost to repair or replace the $27,750,000 base Cost of City Buildings FEMA /STATE Reimbursements (881,250) at the Loss Rate. Construction at 60 %, 75 %, 90% and 100% rebuilt in 2nd, 3rd, 4th and 5th Years After. Insurance Reimbursement, net of $1,175,000 Deductibles Property Insurance Reimbursements (12,700,000) on 47 Buildings within 6 months. FEMA 75% Reimbursement in 1 year. Reduction in Insurance Premiums (63,000) (25,200) (15,750) (1,575) Premiums would be reduced by the Loss Rate the 1st Year After; Then 60 %, 75% and 90% of normal in 3rd, 4th and 5th Year After. Reduction in Utilities and Building Maintenance - (94,365) (15,728) Electric and Water usage would be reduced by the Loss Rate for the first 6 months, then 1/2 the Loss Rate for the next 6 months, then 1/4 the Loss Rate for the next 6 months. GENERAL FUND EXPENDITURES $ 9,980,644 $ 9,980,644 $ 3,260,229 $ 12,644,104 $ 12,046,144 $ 11,713,444 $ 10,674,394 Reserve Fund Beginning Balances $ 5,065,242 $ 5,144,742 $ 9,993,645 $ 5,487,170 $ 2,043,848 $ (666,691) Revenues 10,060,144 21,690,381 10,636,367 8,602,822 9,002,905 9,995,034 Expenditures (9,980,644) (16,841,479) (15,142,842) (12,046,144) (11,713,444) (10,674,394) Reserve Fund Ending Balances $ 5,144,742 $ 9,993,645 $ 5,487,170 $ 2,043,848 $ (666,691) $ (1,346,051) Reserve Balance as % of Current Budget 52% 100% 55% 20% -7% -13%