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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Establishing a 5% Increase in Tree Maintenance Assessments for FY2007
– directing staff to set public hearing and bring back assessment
resolution.
MEETING DATE: June 26, 2006
BACKGROUND: The City Manager’s Recommended Budget includes a proposed 5% rate
increase for Tree Maintenance Assessments. Rates were increased by 3% last year.
Attached you will find a summary of estimated revenues and proposed expenditures for FY07-
FY11 for the Tree Maintenance District fund. The FY07 figures reflect the City Manager’s
Recommended Budget for the fund. Years beyond FY07 are provided for informational
purposes only and are rough estimates based on general inflation figures and increased
assessable land in the district.
Personnel: As a result of this proposed rate increase, one (1) additional forestry worker will be
hired. In the past, contract tree-trimming was sought. We have found it increasingly difficult to
fill this contract and are proposing that a new employee be hired to replace the $40,000 in
contract tree trimming budget.
Operations: Proposed operating budget of roughly $73,000 represents a 24% decrease from the
FY06 budget. This is due primarily to the replacement of the tree-trimming contract with city-
hired personnel.
Capital: Capital spending is budgeted per the Commission approved CIP schedule that was
adopted on June 5, 2006. Included are the following:
Asset Management Software: $ 6,000
Bucket Truck $120,000
Total FY2007 CIP: $126,000
RECOMMENDATION: Direct staff to bring back the Resolution and schedule the Public
Hearing to increase Tree Maintenance District Assessments by 5% for FY2007.
FISCAL EFFECTS: The Tree Maintenance District Assessment rate will increase 5%
over last year’s rate. The City will collect approximately $342,000 in Tree Maintenance
Assessments. An average residential lot of 7,500 sq. ft. will pay $15.60 annually for Tree
Maintenance Assessments ($1.30 per month).
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager
Attachments: Tree Maintenance District – 5 Year Projection
Report compiled on June 22, 2006
Tree Maintenance District - 5 year ProjectionESTIMATEProposed Rate Increase5% 5% 5% 5% 5%FY07 FY08 FY09 FY10 FY11Beginning Fund Balance - Projected130,961 47,122 77,979 138,321 168,097 Estimated Revenues:Assessments 342,432 370,340 400,522 433,165 468,468 Interest Earnings 5,000 5,000 5,000 5,000 5,000 Special Projects Fund - - - - - Total Estimated Revenues: 347,432 375,340 405,522 438,165 473,468 Proposed Expenditures:Existing Personnel 188,600 240,864 250,499 260,519 270,939 NEW - FTE 1.0 43,000 Operations 73,671 76,618 79,683 82,870 86,185 Capital 126,000 27,000 15,000 65,000 - Total Proposed Expenditures: 431,271 344,482 345,181 408,388 357,124 Ending Fund Balance - Projected 47,122 77,979 138,321 168,097 284,441 Assumes 4% estimated growth of assessable square footage - FY07-FY11Assumes Personnel & Operations growth of 4%