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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 Street Maintenance Fees 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 Street Maintenance Assessments. Rates were not increased last year.
Attached you will find a summary of estimated revenues and proposed expenditures for FY07-
FY11 for the Street 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, two (2) additional street maintenance
workers will be hired. Since 1990, only one additional staff member has been added to the Street
division. In that time, the amount of city streets has increased by over 70%. These positions will
enhance our street maintenance capabilities – including street sweeping and snow removal.
Operations: Proposed operating budget of roughly $710,000 represents an 11% increase over
the FY06 budget. Increases are attributed primarily to increased street materials and fuel costs
and storm water compliance/monitoring of approximately $35,000.
Capital: Capital spending is budgeted per the Commission approved CIP schedule that was
adopted on June 5, 2006. Included are the following:
Asphalt Hot Mix Plant: $105,750
Asset Management Software: $ 2,000
Boulevard Mtc Program: $ 25,000
MACI Purchasing Program: $ 40,000
Total FY2007 CIP: $172,750
RECOMMENDATION: Direct staff to bring back the Resolution and schedule the Public
Hearing to increase Street Maintenance District Assessments by 5% for FY2007.
FISCAL EFFECTS: The Street Maintenance District Assessment rate will increase 5%
over last year’s rate. The City will collect approximately $1,674,000 in Street Maintenance
Assessments. An average residential lot of 7,500 sq. ft. will pay $73.73 annually for Street
Maintenance Assessments ($6.14 per month).
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager
Attachments: Street Maintenance District – 5 Year Projection
Report compiled on June 22, 2006
Street Maintenance District - 5 year ProjectionREQUESTRate Increase5% 5% 5% 5% 5%FY07 FY08 FY09 FY10 FY11Beginning Fund Balance - Projected166,389 33,064 20,125 19,399 (183,141) Estimated Revenues:Assessments 1,674,194 1,828,220 1,996,417 2,180,087 2,380,655 Street Cut Permits 15,000 15,000 15,000 15,000 15,000 Interest Earnings 10,000 5,000 5,000 5,000 - Total Estimated Revenues:1,699,194 1,848,220 2,016,417 2,200,087 2,395,655 Proposed Expenditures:Existing Personnel 863,221 987,196 1,026,684 1,163,365 1,209,899 New 2.0 FTE Request 86,006 - 91,936 - - Operations 710,542 738,964 768,522 799,263 831,234 CIP 172,750 135,000 130,000 440,000 92,000 Additional Available for CIP - - Total Proposed Expenditures:1,832,519 1,861,160 2,017,142 2,402,628 2,133,133 Ending Fund Balance - Projected33,064 20,125 19,399 (183,141) 79,380 Assumes 4% estimated growth of assessable square footage - FY07-FY11Assumes Personnel & Operations growth of 4%