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HomeMy WebLinkAboutBudget Work Session - Special Revenue Funds_12.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2013 (FY13) Budget Work Session *** COVER MEMO*** MEETING DATE: May 14, 2012 AGENDA ITEM TYPE: Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: Attached are a number of Staff Memos and Budget Information Sheets. This information has been prepared to assist us in developing the City’s Final Budget for Fiscal Year 2013. The hearing for adoption of the Final Budget is tentatively scheduled for June 18, 2012. During the Work Session, we will cover the information in the following order: 1. Building Inspection Fund – FY13 Budget Work Session Sheet. 2. Planning Fund – FY13 Budget Work Session Sheet. 3. Street Maintenance Fund - FY13 Budget Work Session Sheet. 4. Tree Maintenance Fund – FY13 Budget Work Session Sheet. 5. Community Housing Fund – FY13 Budget Work Session Sheet. FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session. Attachments: Listed Above Report compiled on: May 4, 2012 344     Building Inspection Fund – FY13 Budget Worksheet The Building Inspection Division information begins on page 137 of the City Manager’s Recommended Budget document. Revenues: With our changing budget schedule, this estimate was one of the most difficult to make, because the majority of department revenues come from the spring and summer months. The City Manager’s (CM) Recommended Budget estimates Building Inspection revenue of $965,525, or $80,416/month. So far this fiscal year, monthly revenues have averaged $71,000/month, with our busiest quarter just underway. Actual revenues for April are looking to be ~$83,000. The estimate for FY13 is based on the ACTUAL revenues for the most recent 12 months (April – June of FY11, and July – March of FY12.) Expenditures: The Recommended Budget includes all of the existing department personnel, and a modest operating budget for the division for the year. The Permit Technician was brought back in April, based on permit volumes, and is planned to be retained for the full year on a permanent basis. Total estimated expenditures are $986,616 Excluding personnel costs, a total Building Inspection Fund operating and capital budget of $255,188 is proposed. Attached on the next page, you will find a break-down of the separate areas of the operating budget and a chart representing the same. As you can see, the three largest areas of the operating budget are: • Capital: Computer Hardware & Software – $100,000 CIP project. • Payment of the City’s Administrative Overhead Allocation - $42,898 • In-State Training - $25,000 (the department is budgeting no out-of-state training this year) • Gas and Oil for Inspector travel - $12,000 $‐ $20,000.00  $40,000.00  $60,000.00  $80,000.00  $100,000.00  $120,000.00  Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1Q4 FY12FY11FY10FY09FY08 Average of Monthly Building Fees 345 Date: 5/6/2012FY13 Operating BudgetFY13 CM RECOMMENDED BUDGETBUILDING INSPECTION FUNDDESCRIPTIONFY13 CMRECOMMENDED BUDGETADMINISTRATIVE OVERHEAD$42,898.00 ADVERTISING$3,500.00 BOOKS & REFERENCE MTRLS$9,000.00 CLOTHING & UNIFORMS$2,200.00 COMPUTER SUPPLIES$3,500.00 COMPUTERS & SERVERS < $5K$1,500.00 CONSULTANTS & PROF SERV$5,000.00 DUES & CERTIFICATIONS$1,200.00 GASOLINE AND OIL$12,000.00 GENERAL$11,000.00 IN-STATE$25,000.00 M&E:COMPUTER HARDWARE$100,000.00 MAINTENANCE CONTRACTS$10,000.00 OFFICE SUPPLIES$7,500.00 POSTAGE$1,000.00 REPAIR & MAINT- BUILDINGS$3,000.00 REPAIR & MAINT- EQUIPMENT$9,000.00 SHIPPING & HANDLING$250.00 SMALL EQUIPMENT AND TOOLS$500.00 SUBSCRIPTIONS$150.00 TELEPHONE$6,500.00 VEH MAINT FUND ALLOCATION$490.00 TOTAL $255,188.00 040,00080,000120,000ADMINISTRATIVE OVERHEADADVERTISINGBOOKS & REFERENCE MTRLSCLOTHING & UNIFORMSCOMPUTER SUPPLIESCOMPUTERS & SERVERS <$5KCONSULTANTS & PROF SERVDUES & CERTIFICATIONSGASOLINE AND OILGENERALIN-STATEM&E:COMPUTER HARDWAREMAINTENANCE CONTRACTSOFFICE SUPPLIESPOSTAGEREPAIR & MAINT- BUILDINGSREPAIR & MAINT- EQUIPMENTSHIPPING & HANDLINGSMALL EQUIPMENT ANDTOOLSSUBSCRIPTIONSTELEPHONEVEH MAINT FUNDALLOCATIONBuilding Inspection FundFY13 Operating & Capital Budget346     Budget Surplus or Deficit: Building Inspection Fund FY11 Actual FY12 Budget FY13 Budget Revenues $1,010,000 $869,000 $965,525 Expenditures $735,000 $868,136 $986,616 Surplus/(Deficit) $275,000 $864 ($21,091) The resulting budget deficit is attributed to the computer capital item and would draw down Building Inspection Fund cash reserve, estimated to be $807,436 at the end of FY13. During FY09, the desired level of Building Inspection Fund reserve was discussed at length. We were targeting to develop a budget that would result in a reserve no less than 50% of annual expenditures. By State law, we can have no more than 100% of annual expenditures in reserve in the fund at the end of the year. This proposed budget is estimated to leave the FY13 ending reserve amount at 81% of FY13 annual expenditures.   347     Planning Fund – FY13 Budget Worksheet   The Planning Department information begins on page 111 of the City Manager’s Recommended Budget document. Revenues: Unlike the Building Inspection Fund, the Planning Fund is supported by a number of different revenue sources, including a substantial transfer from the General Fund. As you can see in the table below, as Application Fees have declined, the General Fund subsidy has increased. This budget anticipates that two of our Tax Increment Districts will continue to contribute money to fund the department in the same amount as FY11 & FY12: N 7th District- $10,000 and Northeast District - $5,000. These transfers are included “other revenues” below. Planning Fund ‐  Revenues  FY09 Actual FY10 Actual FY11 Actual FY12 Budget FY13 Budget  Application Fees  $237,000 $134,500 $153,000 $125,960  $112,000   General Fund Transfer  476,000 348,000 327,000 327,000  334,000   Taxes  151,000 147,000 147,000 164,800  167,500   State/Grants  85,000 84,500 95,700 76,500  76,500   Other  21,300 20,400 33,000 33,000  33,000   Total  $970,300 $734,400 $755,700 $727,260  $723,000  The CM Recommended Budget includes estimated Application Fee revenues of $112,000, or $9,300/month. Similar to the Building Inspection Fund, the estimate for FY13 is based on the ACTUAL revenues for the most recent 12 months (April – June of FY11, and July – March of FY12.) As you can see from the graph that follows, average monthly application fees continue to decline, with the most recent quarter seeing a promising increase. 348     Expenditures: Excluding personnel costs, a total Planning Fund operating budget of $80,803 is proposed. Attached on the next page, you will find a break-down of the separate areas of the operating budget and a chart representing the same. As you can see, the three largest areas of the operating budget are: • Computers and Servers - $16,000 for the replacement of department computers. • Computer Supplies - $12,500 for computer system training costs and GIS licenses. • Maintenance Contracts - $8,000 for their photocopier (includes toner supplies.) Budget Surplus or Deficit:  Planning Fund    FY09 Actual    FY10 Actual    FY11 Actual  FY12 Budget  FY13 Budget   Revenues          $970,300          $754,400          $755,700         $ 727,260         $723,000   Expenditures           746,000             691,146             691,146           661,405           734,029  Surplus/(Deficit)           $224,300            $63,254            $64,554             $65,855           $(11,029) Summary: We propose that Quarterly Reports for the Planning Fund continue to be presented for Fiscal Year 2013; unless operational/budget problems are encountered, the report will be put on the Commission’s Consent agenda.   $‐ $5,000.00  $10,000.00  $15,000.00  $20,000.00  $25,000.00  $30,000.00  Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1Q4 FY12FY11FY10FY09FY08 Average of Monthly Planning Fees 349 Date: 5/6/2012FY13 Operating BudgetFY13 CM RECOMMENDED BUDGETPLANNING FUNDDESCRIPTIONFY13 CMRECOMMENDED BUDGETVEH MAINT FUND ALLOCATION$654.00 TELEPHONE$1,200.00 GASOLINE & OIL$1,600.00 BOOKS & REFERENCE MTRLS$1,800.00 SUBSCRIPTIONS$2,000.00 POSTAGE$2,100.00 GENERAL$2,800.00 OUT-OF-STATE$3,000.00 REPAIR & MAINT- EQUIPMENT$3,600.00 INTERNET$3,799.00 DUES & CERTIFICATIONS$4,000.00 ADVERTISING$5,500.00 OFFICE SUPPLIES$6,000.00 IN-STATE$6,250.00 MAINTENANCE CONTRACTS$8,000.00 COMPUTER SUPPLIES$12,500.00 COMPUTERS & SERVERS < $5K$16,000.00 TOTAL $80,803.00 04,0008,000 12,000 16,000 20,000VEH MAINT FUNDALLOCATIONTELEPHONEGASOLINE & OILBOOKS & REFERENCE MTRLSSUBSCRIPTIONSPOSTAGEGENERALOUT-OF-STATEREPAIR & MAINT- EQUIPMENTINTERNETDUES & CERTIFICATIONSADVERTISINGOFFICE SUPPLIESIN-STATEMAINTENANCE CONTRACTSCOMPUTER SUPPLIESCOMPUTERS & SERVERS <$5KPlanning FundFY13 Operating Budget350     Street Maintenance Fund – FY13 Budget Worksheet The Streets Department information begins on page 151 of the City Manager’s Recommended Budget document. Revenue The City Manager’s (CM) Recommended Budget includes a proposed assessment increase for FY13, totaling 3%. • 2% increase in our Reserve for Curbs. • 6% increase to establish a Reconstruction Reserve. • (5.7%) for Storm-water related costs moved to the Storm Water Utility • 0.7% Operating cost increase. We are not anticipating any increases due to “customer growth” this year. Street Assessments are based on square footage of lots. In general, if the city doesn’t annex more property, we will not see an increase in the square footage assessed. On the following page you will find a “5-Year Projection” of revenues and expenditures for the Street Maintenance Fund. We have utilized these long-range financial projections to give us an indication of what the current program costs, with small inflationary increases, and approved capital projects will require in assessment increases. The two colored lines show the Reserve for Curbs and Reconstruction Reserve amounts on an annual basis, along with a grand total accumulated over time. Both of these strategies require continued increases in rates, beyond FY13. Expenditures The following 5-Year Projection also describes the expenditures for Street Maintenance, including re-construction of South 8th Ave. Attached, you will also find a more detailed listing of Street Maintenance Fund operating and capital expenditures titled “FY13 Operating Budget”. You will see from that the top three areas of operating and capital expenditures proposed, excluding South 8th Avenue, for FY12 are: • Capital: Machinery & Heavy Equipment - $245,000. • Principal: Payment on S 8th Loan and Portion of Sweeper Leases - $255,197. • Repair and Maintenance of Equipment - $151,750. 351 Date: 5/6/2012 FY13 Operating Budget FY13 CM RECOMMENDED BUDGET STREET MAINTENANCE FUND DESCRIPTION FY13 CM RECOMMENDED BUDGET ADVERTISING $3,000.00 BOOKS & REFERENCE MTRLS $700.00 CHEMICALS $13,000.00 CLOTHING & UNIFORMS $4,100.00 COMPUTER SUPPLIES $2,000.00 COMPUTERS & SERVERS < $5K $1,150.00 CONSULTANTS & PROF SERV $8,400.00 CONTRACTORS $15,000.00 DUES & CERTIFICATIONS $1,280.00 ELECTRICITY $78,700.00 ENGINEERS $35,000.00 GASOLINE AND OIL $97,880.00 GENERAL $79,980.00 IMP:INFRASTRUCTURE+IMPROV $245,000.00 IN-STATE $5,000.00 INSURANCE $15,000.00 INTERNET $4,500.00 M&E:MACH+EQUIP/HEAVY TRUK $245,479.00 MAINTENANCE CONTRACTS $7,610.00 MEDICAL SERVICES $2,000.00 OFFICE SUPPLIES $1,800.00 OUT-OF-STATE $9,500.00 POSTAGE $200.00 PRINCIPAL $225,197.00 RENTS & LEASES $10,200.00 REPAIR & MAINT - OTHER $8,500.00 REPAIR & MAINT- BUILDINGS $15,000.00 REPAIR & MAINT- EQUIPMENT $151,750.00 ROAD SUPPLIES $83,000.00 SHIPPING & HANDLING $500.00 SMALL EQUIPMENT AND TOOLS $20,500.00 STREET SIGN REPAIR $5,000.00 SUBSCRIPTIONS $800.00 TELEPHONE $5,100.00 VEH MAINT FUND ALLOCATION $148,470.00 VEH:AUTOS + LIGHT TRUCKS $47,244.00 VEHICLE SUPPLIES $27,600.00 WATER SERVICE $2,500.00 TOTAL $1,627,640.00 0 80,000 160,000 240,000 320,000 ADVERTISING BOOKS & REFERENCE MTRLS CHEMICALS CLOTHING & UNIFORMS COMPUTER SUPPLIES COMPUTERS & SERVERS < $5K CONSULTANTS & PROF SERV CONTRACTORS DUES & CERTIFICATIONS ELECTRICITY ENGINEERS GASOLINE AND OIL GENERAL IMP:INFRASTRUCTURE+IMPROV IN-STATE INSURANCE INTERNET M&E:MACH+EQUIP/HEAVY TRUK MAINTENANCE CONTRACTS MEDICAL SERVICES OFFICE SUPPLIES OUT-OF-STATE POSTAGE PRINCIPAL RENTS & LEASES REPAIR & MAINT - OTHER REPAIR & MAINT- BUILDINGS REPAIR & MAINT- EQUIPMENT ROAD SUPPLIES SHIPPING & HANDLING SMALL EQUIPMENT AND TOOLS STREET SIGN REPAIR SUBSCRIPTIONS TELEPHONE VEH MAINT FUND ALLOCATION VEH:AUTOS + LIGHT TRUCKS VEHICLE SUPPLIES WATER SERVICE Street Maintenance Fund FY13 Operating and Capital Budget 352 Street Maintenance District - 5 year ProjectionFY2013 Budget Preparation Estimated Proposed Projected Projected Projected ProjectedRate Increase10% -5% 4% 4%4%4%Customer Increase - sq ftg0%0% 0% 1%1%1%Reserve For Curbs2%2% 2% 2%0%0%Reserve for Reconstruction6%6% 6% 0%0%0%3%FY12 FY13 FY14 FY15 FY16 FY17Beginning Fund Balance - Projected507,145 751,840 377,808 132,355 19,358 50,709 Estimated Revenues:Assessments 2,669,233 2,741,676 3,082,872 3,303,014 3,469,486 3,644,348 Street Cut Permits 10,000 15,000 15,000 15,000 15,000 15,000 Interest Earnings 10,000 10,000 10,000 10,000 10,000 10,000 Loans Proceeds 1,400,000 Total Estimated Revenues:4,089,233 2,766,676 3,107,872 3,328,014 3,494,486 3,669,348 Proposed Expenditures:Existing Personnel 1,192,586 1,212,875 1,249,261 1,286,739 1,325,341 1,365,101 New in FY11 - Reserve for Curbs 95,705 150,538 212,196 278,256 278,256 278,256 1,057,270.26 New in FY12 - Street Reconstruction 160,154 324,655 509,627 509,627 509,627 509,627 2,013,689.11 Operations 888,993 864,720 890,662 917,381 944,903 973,250 Debt Service, Intercap- 155,197 155,197 159,007 159,007 166,783 Approved CIP *with adjustments 1,507,100 432,723 336,383 290,000 246,000 330,000 Total Proposed Expenditures:3,844,538 3,140,708 3,353,326 3,441,011 3,463,134 3,623,017 Ending Fund Balance - Projected751,840 377,808 132,355 19,358 50,709 97,040 Annual Assessments: Small Lot, 5,000 sq ft.69.77$ 71.86$ 80.48$ 85.31$ 88.73$ 92.28$ Average Lot, 7,500 sq ft.104.67$ 107.81$ 120.75$ 127.99$ 133.11$ 138.44$ Large Lot, 10,000 sq ft.139.56$ 143.75$ 161.00$ 170.66$ 177.48$ 184.58$ A. Rosenberry5/6/2012353     Tree Maintenance Fund – FY13 Budget Worksheet The Forestry Department information begins on page 196 of the City Manager’s Recommended Budget document. Revenue The CM Recommended Budget recommends no increase for Tree Maintenance Assessments. However, because of the annual assessment process, we still need to hold public hearings and adopt the same rate as last year. Expenditures In developing the budget for the Tree Maintenance Fund, we also customarily look at a 5- Year Projection of expenditures and revenues. This projection is attached. Also attached is a more detailed list of the Funds budget for operating expenditures. As you can see from that report, the top three areas of budgeted expenditures are: • General - $62,505. Includes o $22,500 for 225 Tree Replacement Vouchers, o $9,375 for 125 Cost Share Trees, and o $5,000 for Elm Scale treatments in Cooper Park. • Gasoline and Oil – $12,000 for operating department vehicles. • Repair and Maintenance of Equipment – $6,000. The CIP item to replace the Chipper is recommended to be delayed for at least another year.    354 Date: 5/6/2012 FY13 Operating Budget FY13 CM RECOMMENDED BUDGET TREE MAINTENANCE FUND DESCRIPTION FY13 CM RECOMMENDED BUDGET ADVERTISING $2,550.00 BOOKS & REFERENCE MTRLS $500.00 CHEMICALS $500.00 CLOTHING & UNIFORMS $1,250.00 COMPUTER SUPPLIES $750.00 CONSULTANTS & PROF SERV $1,000.00 DUES & CERTIFICATIONS $850.00 ELECTRICITY $600.00 GASOLINE AND OIL $12,000.00 GENERAL $62,505.00 IN-STATE $4,000.00 INSURANCE $2,500.00 INTERNET $3,000.00 MAINTENANCE CONTRACTS $900.00 MEDICAL SERVICES $300.00 OFFICE SUPPLIES $2,000.00 OUT-OF-STATE $1,500.00 PERSONAL COMPUTERS $150.00 POSTAGE $4,200.00 REPAIR & MAINT - OTHER $500.00 REPAIR & MAINT- BUILDINGS $1,000.00 REPAIR & MAINT- EQUIPMENT $6,000.00 ROAD SUPPLIES $2,000.00 SHIPPING & HANDLING $200.00 SMALL EQUIPMENT AND TOOLS $3,500.00 SUBSCRIPTIONS $250.00 TELEPHONE $1,550.00 VEH MAINT FUND ALLOCATION $5,895.00 VEHICLE SUPPLIES $2,500.00 WATER SERVICE $300.00 TOTAL $124,750.00 0 10,000 20,000 30,000 40,000 ADVERTISING BOOKS & REFERENCE MTRLS CHEMICALS CLOTHING & UNIFORMSCOMPUTERSUPPLIESCONSULTANTS &PROF SERVDUES &CERTIFICATIONS ELECTRICITY GASOLINE AND OIL GENERAL IN-STATE INSURANCE INTERNET MAINTENANCECONTRACTS MEDICAL SERVICES OFFICE SUPPLIES OUT-OF-STATE PERSONAL COMPUTERS POSTAGE REPAIR & MAINT -OTHERREPAIR & MAINT-BUILDINGSREPAIR & MAINT-EQUIPMENT ROAD SUPPLIES SHIPPING &HANDLINGSMALL EQUIPMENT AND TOOLS SUBSCRIPTIONS TELEPHONE VEH MAINT FUND ALLOCATION VEHICLE SUPPLIES WATER SERVICE Tree Maintenance Fund FY13 Operating, Capital, and Debt Budget 355 Tree Maintenance District - 5 year ProjectionFY2013 BudgetApprovedRecommendedProjectedProjectedProjected ProjectedProposed Rate Increase0%0%3% 3% 4%4%Estimated Growth in Assessable Sq Ftg0%0%0% 1% 1%1%FY12 FY13 FY14 FY15 FY16 FY17Beginning Fund Balance - Projected208,880 205,557 180,471 86,720 38,732 24,862 Estimated Revenues:Assessments (FY12 Actual Billed) 422,129 422,129 434,793 452,315 475,112 499,057 Penalty and Interest 2,000 2,000 2,000 2,000 2,000 2,000 Interest Earnings 2,000 2,000 2,000 3,000 3,000 3,000 Sale of Cost-Share-Trees 10,000 10,000 10,000 10,000 10,000 10,000 Total Estimated Revenues: 436,129 436,129 448,793 467,315 490,112 514,057 Proposed Expenditures:Existing Personnel 326,666 336,465 346,559 356,956 367,664 378,694 Operations 112,786 124,750 128,493 132,347 136,318 140,407 Capital - 67,492 26,000 - - Total Proposed Expenditures: 439,452 461,215 542,543 515,303 503,982 519,102 Ending Fund Balance - Projected205,557 180,471 86,720 38,732 24,862 19,818 Annual Assessments: Small Lot, 5,000 sq ft.11.24$ 11.24$ 11.58$ 11.93 12.40 12.90 Average Lot, 7,500 sq ft.16.87$ 16.87$ 17.37$ 17.90 18.61 19.36 Large Lot, 10,000 sq ft.22.50$ 22.50$ 23.17$ 23.87 24.82 25.81 A. Rosenberry5/6/2012356     Community Housing Fund – FY13 Budget Worksheet   Community Housing Fund (Fund 120) is included in the Community Development Expenditure Information on page 211 Community Housing Fund – FY13 Expenditure Total $40,000 The Community Housing Fund holds revenues from some previous housing loans that are slowly coming back to the city, and also has been where we have deposited and recorded the activity of the City’s tax dollars dedicated to Workforce Housing. The CM Recommended Budget includes tax revenue of 1/2 mill (estimated at $41,885) for Workforce Housing efforts. We have received one request for funding from Road to Home, in the amount of $40,000 (letter attached.) For a number of years, the City has set aside general fund dollars/tax dollars for Workforce Housing efforts. Revenues set aside often outstripped expenditures. At the end of Fiscal Year 2012, we estimate the available balance to be $229,265. The FY13 Recommended Budget would result in an ending balance of $326,150, assuming no additional projects are funded. Workforce Housing Funding Within the Community Housing Fund Adopted Proposed 1.0 Mill 2.0 Mills 2.0 Mills 1.46 Mills 1.0 Mills 0.5 Mills 0.5 Mills 0.5 Mills FY06 FY07 FY08 FY09 FY10 FY11* FY12 FY13 Beginning Balance - 28,000 94,248 182,514 255,449 298,739 253,234 229,265 Revenues: General Fund Transfer 58,000 126,500 137,962 Dedication of Tax Revenue 105,600 78,290 40,000 41,031 41,885 Interest Earnings - 6,285 8,166 7,335 5,000 4,495 5,000 5,000 Total Estimated Revenues: 58,000 132,785 146,128 112,935 83,290 44,495 46,031 46,885 Expenditures: Road to Home - Administration 30,000 30,000 40,000 40,000 40,000 40,000 40,000 HRDC - Owner Occupied Home Rehab 50,000 Habitat for Humanity - 4 Lots 60,000 Workforce Housing Ordinance Development 6,537 7,837 Workforce Housing Administrator 20,025 Housing Needs Assessment 30,000 Total Proposed Expenditures: 30,000 66,537 57,862 40,000 40,000 90,000 70,000 40,000 Ending Balance 28,000 94,248 182,514 255,449 298,739 253,234 229,265 236,150 357 358 359