City of New Smyrna Beach Tentative Budget

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1 City of New Smyrna Beach Tentative Budget Final Hearing September 23,

2 UCF July 09 Citizen Survey Question The services and amenities residents receive from the City of New Smyrna Beach are a good value considering the taxes they pay 81% agreed or agreed strongly. 81% agreement is the highest level of agreement observed in any of their community surveys. 2

3 FY 10 Policy Decisions 3.94 tentative millage rate for Trim Notice 7 positions reduced or frozen ($250,000) Limited capital improvements Transfer from Sanitation Fund ($75,000) Additional cuts of $177,402 were made at workshops by the Commission, which could lower the millage rate to

4 To-Date Policy Decisions Commission requested that staff present a Reserve/Stabilization Policy for discussion at First Public Hearing for formal adoption at a later date Rollback rate of tentative millage rate approved on first reading 4

5 FY 10 Tentative Budget Challenges Continued decline in taxable property values (20%) Continued decline in state shared revenues (gas tax, sales tax) Continued decline in planning/building inspection fees Continued decline in interest revenue Moderate increases in major expenditures for utilities, chemicals, maintenance, fuel 5

6 TAXABLE PROPERTY VALUES TAXABLE PROPERTY VALUES 4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000, ,000,000 - FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 6

7 MILLAGE RATES FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

8 FY10 Tentative Millage TAX BILL EXAMPLE Average NSB Residential Property per Property Appraiser Assessed Value - Average Residential Property 180,000 Taxable Value - Non School - ($50,000 Homestead Exempt) 130,000 Millage Rate Schools , Volusia County St Johns WMD Fla Inland Nav Bert Fish Operating Mosquito Control Dist Ponce Inlet Port Auth Total Non City , City of NSB City of NSB Debt Svc Total City % of Total Tax Bill Total ,

9 Millage Rates in other coastal cities: Adopted Tentative Roll-back First Hearing % Incr(Decr) over Roll-back Edgewater % Daytona Beach % South Daytona % Volusia County (MSD) % Daytona Beach Shores % Ponce Inlet % Port Orange % New Smyrna Beach % Ormond Beach % 9

10 80% of NSB Taxable Value is Residential Parcel Data 18,367 Total 14,674 Residential 7,266 Homestead 49.5% of Residential Properties are Homestead 10

11 GENERAL FUND REVENUES 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% REVENUES BY CATEGORY FY06 FY07 FY08 FY09 FY10 Transfers from Other Revenues Appropriated Fund Equity Miscellaneous Revenues Fines & Forfeitures Charges for Services Intragovernmental Revenue Licenses & Permits Other Taxes Ad Valorem Taxes 11

12 GENERAL FUND EXPENDITURES GENERAL FUND EXPENDITURES BY FUNCTION 14,250,000 12,250,000 10,250,000 8,250,000 6,250,000 4,250,000 2,250, ,000 FY06 FY07 FY08 FY09 FY10 General Government Public Safety Transportation Culture/Recreation Special Recreation Intragovernmental Services Debt Service Transfers 12

13 GENERAL FUND EXPENDITURES GENERAL FUND EXPENSE BY M AJOR CLASSIFICATION Capital Outlay 4% Other 2% Transfers Out 3% Personal Services 65% Operating Expenses 26% 13

14 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 % % of Actuals Actuals Actuals Budget Budget Change Total EXPENDITURES City Commission 186, , , , , % 0.8% City Manager 269, , , , , % (1) 3.3% City Clerk 403, , , , , % 0.8% Finance 447, , , , , % 1.9% IT 334, , , , , % 1.3% HR 115, , , , , % 0.7% City Attorney 355, , , , , % 2.0% Development Services 764,246 1,081, , , , % 3.7% Public Works Admin 303, , , , , % 1.1% Police 5,760,801 6,384,990 6,374,573 6,759,240 6,097, % 28.1% Fire 5,840,925 5,961,914 5,541,869 5,499,278 5,134, % 23.7% EOC 43,419 28,800 32,716 30,587 27, % 0.1% Streets 1,652,103 2,081,198 1,569,235 1,790,204 1,623, % 7.5% Recreation 1,516,447 1,350,728 1,259,041 1,365,064 1,299, % 6.0% Parks 891,820 1,114,273 5,776,246 1,647,510 1,356, % 6.3% Sports Complex 666, , , , , % 2.9% Transfers 511,689 2,256,859 1,937, , , % 3.0% Building Maintenance 455, , , , , % 2.1% Non Departmental 1,068,520 1,014, , ,617 1,061, % (2) 4.9% TOTAL EXPENDITURES 21,586,529 24,710,149 27,740,236 23,112,600 21,707, % 100.0% Note (1) Includes one-time payout for previous City Manager Note (2) Includes Capital Outlay for Commission Chambers Renovations 14

15 Debt Service Funds Debt Service Funds account for the accumulation of resources for the payment of long-term principal and interest Debt Service Millage.5206 in FY2010 to generate $1,419,208 Revenue estimated at 95% collection rate as per state statute 15

16 LONG-TERM DEBT OUTSTANDING Principal 2010 Final Original Outstanding Budgeted Issue Maturity Amount 9/30/2009 Debt Service General Obligation ,800,000 15,420,000 1,419,336 Florida Municipal Loan Council ,985, , ,768 Capital Improvement Refunding ,000,000 1,378, ,264 Promissory Note ,639,000 98,782 21,452 Promissory Note ,170, ,556 45,773 Promissory Note ,000,000 2,228, ,772 State Revolving Fund ,254,670 1,580, ,032 State Revolving Fund , ,379 40,408 State Revolving Fund , ,096 33,310 State Revolving Fund ,022 84,674 92,697 22,593,936 2,680,812 16

17 Millage Rate Stabilization Reserve Reserve 15% Reserve Reserve Reserve of Annual 2 months 3 months 4 months Budget Operation Operation Operation Unreserved Fund Balance as of 9/30/2008 $ 10,359,978 $ 10,359,978 $ 10,359,978 $ 10,359,978 Less estimated 9/30/2009 (250,000) (250,000) (250,000) (250,000) Establish Millage Rate Stabilization Fund (2,000,000) (2,000,000) (2,000,000) (2,000,000) Available Balance 8,109,978 8,109,978 8,109,978 8,109,978 Total Operating Budget for F/Y ,112,600 Daily cost of operations 64,000 Reserve utilization scenarios GFOA Policy for Fund Balance Reser ves: 15% of Annual Budget 3,466,890 3,466,890 or No less than 1-2 Months operating expense 60 days 3,840,000 3,840,000 Other Options: 90 days operating expense 5,760,000 5,760, days operating expense 7,680,000 7,680,000 Remaining ng Reserve Balance ance for Appropriation i i on 4,643,088 4,269,978 2,349, ,978 FY 2010 Millage l l Stabilization l i i (292,591) (292,591) (292,591) (292,591) Remaining Balance $ 4,350,497 $ 3,977,387 $ 2,057,387 $ 137,387 17

18 Fund Balance Reserve Policy Establish $2,000,000 Millage Rate Stabilization Reserve for the five years (FY10 14) Establish 25% of prior year operating expense budget as annual strategic reserves (90 days) Utilize any remaining reserve balance for one-time non-recurring expenditures, such as vehicle replacement, infrastructure, buildings, land acquisition, support of economic development 18

19 Assumptions for Projections PERCENT INCREASE (DECREASE) YEAR Taxable Value (A) Other Revenues (B) Expenditures (C) Property Taxes Sales Tax, Gas Tax, Franchise Fees, Other Personnel Services, Operating Expenses, Capital Outlay % -3.0% -5.0% % -3.0% 1.5% % -2.0% 1.8% % 0.0% 2.0% % 2.0% 2.0% 19

20 Policy Goal: Stabilization Fund to facilitate a Set Millage Rate Program MILLAGE TOTAL $ REVENUE USE OF MILLAGE YEAR RATE EXAMPLE GENERATED STABILIZATION FUND (Rollback Rate) ,415,275 ( 292,591) ,692,640 (1,129,860) ,204,103 (1,000,291) ,655,798 7, ,494, , Year Net Utilization of Reserves (2,022,872) 20

21 Assumptions for Projections, cont (A) Review of property appraisers data and national/state economic newsletters (B) Trends and projections of significant non-ad valorem revenue sources (C) Personnel services costs (65% of operating expenses for FY 10) and operating expenses fuel, utilities, etc, and assuming same level of staffing 21

22 SUMMARY Implement adopted budget Present Reserve Fund Policy for future adoption Present Stabilization Fund Policy for future adoption 22

23 Future Staff Action for FY11-15 Outcome (service provision) Budget Format Continued evaluation and review of line-item expenses Involvement of city employees in budget process Benchmarking of service provision (performance measures) to other similar sized cities through UCF Benchmarking Consortium Expansion of FY11-15 Forecasting model to incorporate detailed revenue and expenses projections 23

24 Future, continued Direct linkage to City Commission goals and priorities in FY11 15 proposed budgets Earlier Commission Workshops on forecast models and policy discussions Enhanced public information on City Budget Continued monthly Financial Operating Statements VCOG Efficiency Study efforts to continue with neighboring cities Monitor the impact of 2010 state legislative actions on 2011 millage 24