Transcript '09-'10 Fiscal Year Budget Format

JUNE 7 2012 BUDGET WORKSHOP NO. 1
12-13 FISCAL YEAR BUDGET
FORMAT
Operation Innovation
Innovation will serve to keep the plan in the forefront of all that
we do. Our actions should always be advancing the Plan.
Innovation of the Business Plan
This continues the evolution of the City’s fiscal transformation efforts
to produce a more transparent document, greater accountability
to the citizens, and improve the accuracy, efficiency and timeliness
of financial information.
Today’s purpose is to solicit City Council direction of the previously
adopted budget process, format, and key management
principals.
Workshop Schedule
Schedule of FY 12-13 Council Work Sessions:
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June 7- Budget Format Workshop*
June 26- Capital Projects & Replacement/Renewal Fund Workshop*
July 10- General Fund (and smaller ancillary funds) Workshop*
July 24- Enterprise Fund Workshop (Electric, Telecommunications,
Water/Sewer, Sanitation, Golf & Airport)*
August 7-Preliminary Budget Presentation Workshop*
TBA- 1st Reading Tentative Budget (Public Hearing)
TBA- 2nd Reading Final Budget (Public Hearing)
*11:00 Council Lunch
*11:30-1:30 Work Session (Council Chambers)
FY 12-13 Budget Format
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There will be separate documents for workshops versus public hearings in
September. All documents will be disseminated electronically.
The Fiscal Managers/Department Heads for the service areas will be
involved in the presentation of their respective budgets.
All budgetary decisions will be tied to one or more goals in the Strategic
Plan.
We are utilizing 7 strategies to balance the budget for FY12-13.
In FY 11-12 we successfully accomplished the following:
 Migration to the State Chart of Accounts for Expenditures
 Bringing the Internal Service Funds into the budget
 Budgeting all dollars including reserves
 Adoption of GASB 54 Fund Balance Policy
Changes Between FY11-12 Budget and
FY 12-13
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Certain departmental fee increases will be presented for adoption with
the Budget.
The Key Management Practices will be reviewed and updated for
adoption with the Budget.
Exploring plan for migration to State Chart of Accounts for Revenues
during FY 12-13.
7 Strategies being Utilized to
Balance the FY 12-13 Budget
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2.
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4.
5.
6.
7.
Blueprint to Fiscal Sustainability
3% & 10% budget reduction submittals
911 Communications Consolidation
Pension Reform
Debt Refinancing
Interfund Transfers
Voluntary Separation Incentive Program
Initiatives Progress
A strategic blending of the 3% & 10% cuts have been
incorporated into the current budget scenario
 The Debt refinancing has been incorporated into the
current scenario
 Interfund transfers will be the same as FY11-12 with a
decrease of $1.5M from the Police/Fire Mil fund
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Items of Discussion
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TRIM Process
Fees & Taxes
Revenue Projections
Community Redevelopment Area (CRA)funding priorities
Capital Improvement Plan (CIP) funding
Current General Fund Deficit
Millage Comparison
Value of a mil (at 95% collection rate):
2010- 1 mil- $3.9M
2011- 1 mil- $3.7M
*2012- 1 mil- $3.5M
*Based on June 1, 2012 Preliminary estimate from Property Appraiser
Recommendation for FY 12-13 is to adopt the rolledback Rate. This is the Revenue Neutral option.
Fees &Taxes
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The same services will be provided at the currently established service
levels
There are no tax increases programmed in the budget
The Departmental Service Fee increases recommended in FY 12-13 are
designed to cover the true cost of service
The Fire Fee will remain at the current level for Residential and Commercial
The comprehensive fee schedule will be presented to Council for adoption
along with the Budget
Revenue & Growth Projections
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We expect CDBG dollars to be flat in FY 12-13
Tax Revenues (sales tax, communications tax, gas taxes etc) are expected
to remain flat
We have programmed transfers from the Enterprise funds at the same level
as FY11-12
The transfer from the Police/Fire ¼ Mil fund has been reduced to $1M
from the $2.5M in FY11-12 (one time revenue source)
Any recovery of Economic Improvement Program dollars will roll back into
the program to fund future projects
We expect a very modest increase in growth of new business and building
throughout the City, but expect to budget conservatively
CRA Funding Priorities
Funding for projects and ongoing operating are very limited within the CRA.
Fund Balance: $3.6M
Annual Revenue: $600K
Proposed Project
Budget Estimate
Comments
Negotiated Demolitions
$50,000
Ongoing
Façade Grant
$50,000
Downtown Signage (Merje)
$100,000
Ongoing
Imagine North Magnolia
$172,705
Ongoing
Parking Garage (Land Acquisition)
$300,000
Parking Garage (Design)
$406,444
Parking Garage Construction
$7,500,000
Ongoing (Debt Service)
Gas Light Parking Lot
$80,000/ $600,000
Option 1/Option 2
Osceola Linear Park
$1,500,000
Minimum (SR 40 to NE 5th Street)
Senior Manager, Redevelopment
$90,000
Ongoing
CIP Funding Plan
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Bond funds are limited and should run out by year end FY12-13
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Project requests exceed funding availability
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Several projects are multi phase, however funding beyond phase 1 is not
presently available (puts additional pressure on the General Fund)
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Most CIP revenue sources are non recurring in nature
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Key Management Practices indicate
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Capital Expenditures: All capital projects planned and budgeted for in any given
fiscal year will have funding identified and proven to be available. This means
that all projects are subject to funding already received in prior fiscal years.
Funds that are earmarked for receipt during the current fiscal year will not be
utilized for current year expenditures.
General Fund Assumptions
Revenue Assumptions
Includes $1 million transfer from fire/police improvements fund
5.1% decrease in property values
Assumes that revenues remain flat
Expense Assumptions
Non-Departmental Operating and Transfers To Other Funds will remain flat
Does not include all grant expenses as a majority are brought into the budget after adoption
Does not include support to the Ocala Municipal Golf Course
Includes approved special requests
Does not include OPD's position requests, increase requests, or upgrades
Additional 3% request from OPD included for planning purposes only
$79,725 moved from OPD's general fund budget to the Police Trust and Agency Fund
Does not include reserves
General Fund Status FY12-13
GENERAL FUND REDUCTIONS BY PERCENTAGE
Adopted
YTD
Revised
Increase/
Increase/
FY 10-11
Budget
Actuals
Base Budget
Decrease
Decrease
Actuals
FY 11-12
FY 11-12
FY 12-13
Amount
Percentage
Revenues
$50,808,008
$48,592,420
$35,069,181
$48,570,411
$(22,009)
-0.05%
Transfers from Other Funds
$11,358,680
$15,242,555
$9,964,509
$13,742,555
$(1,500,000)
-9.84%
Total Revenues & Transfers
$62,166,688
$63,834,975
$45,033,690
$62,312,966
$(1,522,009)
-2.38%
Operating Expenditures
$63,133,849
$64,730,249
$39,519,896
61,918,769
(2,811,480)
-4.34%
$3,333,077
$3,642,608
$2,536,656
4,020,829
378,221
10.38%
$66,466,925
$68,372,857
$42,056,552
$65,939,598
$(2,433,259)
-3.56%
$(4,300,237)
$(4,537,882)
$2,977,138
$(3,626,632)
Transfers & Reserves
Total Expenditures
REVENUES - EXPENDITURES
Decision Points
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CRA funding priorities
CIP funding and adherence to Key Management
Practices
General Fund Deficit funding
Questions/Comments