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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
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Assumptions on Expenditures
Extra Overtime
• Engineering Cost for Repair or Reconstruction
• Repair or Reconstruction Construction Cost
• Insurance less deductibles - 6 months delay
• FEMA and FHWA — 1 year delay
• Most is eventually recovered
• Operating expense at current level, no capital
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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%