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Home My WebLink About2001 09 24 Public Hearings A Resolution 2001-40 Final Millage for Fiscal Year 2001-2002 COMMISSION AGENDA ITEM A CONSENT INFORMATIONAL PUBLIC HEARING XX REGULAR Septemher 24, 2001 Meeting ~IDEPT. "-. . A lIthof1 zMlOn PUBLICLY ANNOUNCE THE REQUEST REQUEST: The City Manager is requesting the City Commission hold a Public Hearing relative to the approval of Resolution No. 2001-40, which establishes the Final Millage for Fiscal Year 2001-2002 for the City of Winter Springs at 3.7708 which is 12.47 % above the rolled-back rate of 3.3528. PURPOSE: The purpose of this agenda item is to have the Commission approve Resolution No. 2001-40, otherwise known as the Final Millage for Fiscal Year 2001-2002. CONSIDERATIONS: Resolution No. 2001-40 - regarding Final Millage - as it currently stands: · Would result in a millage increase. The current millage for FY 2000-2001 is 3.5400. The Final Millage for FY 2001-2002 would be established at 3.7708 if this resolution is passed as it currently stands. · The Rolled-Back rate is 3.3528. The Final Millage rate as it currently stands is 12.47 % above the Rolled-Back rate. · An increase in the Final Millage rate to 3.7708 over the current rate will result in an increase of$ 262,700 in Ad Valorem Revenues to the City. · The proposed final budget book you received reflects the results of the most recent 9/17/01 budget meeting including the 3.7708 millage rate. NOTE: We are approving thefinal millage rate - if their are any budget issues that would affect the final millage rate - they need to be discussed now and the final millage resolution will be amended before adopted. Answers to your budget questions from the 9/17/01 meeting are attached. Based on your review of the answers to those questions - you may want to adjust budgeted revenue or expenses and the final proposed millage. Additionally, the Manager has suggested that the Commission may want to consider the City funding the 4 new Police Officers for the entire year (raising the millage to cover them for a full year), but hire them as of 4/1/02. This way the millage would be set to cover the entire annual expense for FY 03. The additional revenue potentially realized in FY 02 could be used to offset any potential shortfalls in our revenue estimates due to the uncertainty of our economy, the current interest rates and our dependence on state monies. RECOMMENDATION: The Commission adopt Resolution No. 2001-40 establishing the Final Millage for Fiscal Year 2001-2002 as amended if deemed necessary. IMPLEMENTATION SCHEDULE: Upon approval and adoption of Resolution No. 2001-40, the Millage for Fiscal Year 2001 - 2002 would be implemented and become effective on October 1, 2001. ATTACHMENTS: · Resolution No. 2001-40 · Memo dated 9/19/01 - Answers to Budget Questions posed at the 9/17/01 Budget Meeting · Recap of Changes to Revenues and Expenses from the Tentative Budget to the Final Proposed Budget for the General Fund, Other Governmental Funds and the Enterprise Fund COMMISSION ACTION: RESOLUTION NO. 2001-40 A RESOLUTION OF THE CITY OF WINTER SPRINGS, FLORIDA, ADOPTING THE FINAL MILLAGE RATE FOR THE CITY OF WINTER SPRINGS FOR THE FISCAL YEAR COMMENCING ON OCTOBER 1,2001 AND ENDING ON SEPTEMBER 30, 2002; ANNOUNCING THE PERCENTAGE BY WHICH THE FINAL MILLAGE RATE EXCEEDS THE COMPUTED ROLLED-BACK RATE; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission of Winter Springs has held a public hearing on the final millage rate pursuant to Florida Statute 200;065, Subparagraph (c); and WHEREAS, the City Commission of Winter Springs desires to adopt the final millage rate and publicly announce their percentage change by which the final millage rate exceeds the computed rolled-back rate. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, AS FOLLOWS: Section 1. The City Commission adopts its final millage rate of 3.7708 mills for the fiscal year commencing October 1, 2001 and ending September 31, 2002. Section 2. The final millage rate of 3.7708 mills is more than the computed rolled-back rate of 3.3528 by 12.47%. Section 3. Within thirty (30) days of the date of this Resolution, the City Clerk shall certify compliance with Chapter 200, Florida Statutes by causing the Certification of Compliance, along with all necessary documentation, to be sent to the Division of Ad Valorem Tax of the Department of Revenue. Section 4. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or portion of this resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 6. Effective Date. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. ,.'~ ,.,,,,,, \', \, I ........... ...... \\1, , " .: '.') "I".' '. ) J . ADOPTED by the City Commission of the City of Winter, Sp,ri,hgs, f,lqrida; 'i!"" ?' , Special Meeting assembled on this 24th da of Se ") '1;,\ ;' ",' I, , . . 4. , I :.:.---: . J , ) ..' )-, , . J PauIP.Partyk~\~ayo ATTEST: zo-Luaces, City Clerk City of Winter Springs Memo To: Mayor and City Commission From: Louise Frangoul Date: 09/19/01 Re: Budget Questions From 9/17/01 Budget Meeting The Commission requested additional information regarding the following budgeted line items: . Interest Earned - An interest rate of 6% was assumed on the approximate $3.2 million dollar fund balance. Also assumed was the conversion to pooled cash and the ability to invest surplus funds. In light of the recent drops in the interest rate, this line item may well come in short. . Concession Stand Revenues - This item was increased over the current year assuming that the second concession stand would be running for a full year and the stands would be in use longer with the addition of the soccer night lighting. The Concession Stand Revenues were budgeted to cover the Concession Stand Expenses. During the Managers budget work sessions with the Director of Parks & Recreation it was emphasized that the revenues were to cover the expenses and if there were to be a shortfall in revenues then there should be a corresponding shortfall in expenses. I spoke with the Director of Parks & Recreation and he is still comfortable with the budget for these line items. . Half-Cent Sales Tax Revenue - The Department of Revenue has not yet changed this revenue estimate as of 9/18/01 on their web site. I understand that there are talks currently taking place regarding the probability of realizing the revenue estimates. This estimate may well be revised downward. · Reimbursement - Tuscawilla Lighting and Beautification District - Please see attached calculation. During FY 98 and FY 99, the General Fund incurred expenses related to TLBD in the amount of $245,004. During FY 00, this expense was "charged" to the TLBD fund - see ''Transfer to General Fund". A transfer of $275,000 (estimate of the $245,004) was budgeted for FY 01; however, I was able to do it early, in FY 00. At the end of FY 00, cash was due to the General Fund from the TLBD fund, as the General Fund "fronted" the money for payment of expenses. This is a balance sheet classification between cash, due to's and due from's. There are no more reimbursements (revenue) due to the General Fund from TLBD - the entire reimbursement of expenses incurred in the General Fund was recognized in FY 00. . Reimbursement - Oak Forest - We had budgeted in FY 01 a reimbursement to the General Fund from Oak Forest for expenses incurred by the General Fund on behalf of Oak Forest; however, I was able to charge the Oak Forest Fund directly in FY 00 those expenses incurred in FY 00. A reimbursement was no longer needed other than the minor one of $5,700 for expenses . Page 1 incurred by the General Fund in FY 99. This reimbursement was handled in FY 00 also. There are no more reimbursements (revenue)due to the General Fund from Oak Forest. . Police Overtime - The Police OT is budgeted at 4%. Per discussions with the Chief of Police, he feels that this is still a good number even with the addition of 4 Officers in April 2002 given their standard budgeted overtime, court overtime, unexpected overtime and special events such as the holiday parade, fall concert, fourth of July. . Police Fuel & Oil - The combined Police Department and the COPS Officer Budget and Projections reflect the following: . FY 02 Budget $71,900 $48,000 $64,600 . FY 01 Budget . Projected 01, per budget and recent review of actuals to date The projection looks good given the actuals through August and the estimate for September. Given the recent events in the Middle East I would be hesitant to scale it back the few thousand or so between the FY 01 projection and the FY 02 budget. . Police Health Insurance - The adjusted Health/Dis/Life Expense line item (adjusted from the POS to the HMO) for the Police Department is $230,500. Their are 74 full-time employees at $3,OOO/yr for health insurance = $222,000 with the remaining amounts for life and disability expense. I am comfortable with this number. . Police Repairs and Maintenance - Equipment - FY 02 budget is at $27,300, FY 01 is at $20,000, FY 01 projection (on budget) at $18,600. Current actuals as of 9/18/01 at $19,385. The Department anticipates an increase in the budgeted cost of repairs due to the age of the existing equipment and has specifically identified an additional $5,500 in miscellaneous computer costs that have been included in this line item due to their small purchase price. Question regarding the increase in cost to the General Fund for health insurance: Currently the City incurs $506,966 in health insurance costs. Our new budgeted health insurance cost is $720,462 - an increase of $213,496. About 83% of that increase is attributable to the General Fund - or $177,202. . Page 2 EXHIBIT A - FINAL BUDGET GENERAL FUND CITY OF WINTER SPRINGS SUGGESTED CHANGES TO TENTATIVE BUDGET (PROPOSED FINAL CHANGES) AGREED TO AT SEPTEMBER 17, 2001 COMMISSION MEETING FY 2002 $ 14,023,600 Tentative Revenue $ (192,600) Ad-Valorem Taxes - Decrease millage from 3.94 to 3.7708 $ (192,600) Suggested Changes to Tentative Revenue $ 13,831,000 Proposed Final Revenue $ 14,080,100 Tentative Expense and Appropriations to (from) Fund Balance $ (71,000) Reduction in Police Officer Expense - Hire 4/1/02 vs. 10/01/01 $ (55,600) Remove CLIP Police Officers $ (51,100) Reduction in Health Expense from POS plan to HMO plan $ (32,000) Remove Moss Park Wall/Senior Bus $ (20,000) Remove Additional Marketing Expense $ (19,400) Reduction in Newsletter Expense - go to 3 bw and 1 color edition $ (249,100) Suggested Changes to Tentative Expense $ 13,831,000 Proposed Final Expense $ 3,181,841 Projected Fund Balance Oct 1, 2001 $ Appropriations to (from) Fund Balance $ 3,181,841 Projected Fund Balance Sept 30,2002 Note: the $5,000 in Donations and the $29,500 in Mosquito Expense was not in the original Tentative Budget book presented to the Commission at the 9/10/01 meeting; and therefore is not a reconciling item from the Tentative Budget to the Final Budget figures. The Donation line item was voted in at the 9/12/01 meeting and it was voted out at the 9/17/01 meeting. The Mosquito line item was also voted out at the 9/17/01 meeting - it had not yet been voted in. EXHIBIT B - FINAL BUDGET OTHER GOVERNMENTAL FUNDS CITY OF WINTER SPRINGS SUGGESTED CHANGES TO TENTATIVE BUDGET (PROPOSED FINAL CHANGES) FY 2002 $ 16,579,140 Tentative Revenue No Change $ $ 16,579,140 Proposed Final Revenue $ 20,267,371 Tentative Expense $ 600,000 Add Fisher Road Capital Project to Transp Improvement Fund $ (17,100) Remove Equip/Supplies from Police Impact for CLIP Officers $ (1,300) Reduction in Health Expense from POS to HMO for Storm $ 581,600 Suggested Changes to Tentative Expense $ 20,848,971 Proposed Final Expense $ 6,884,329 Projected Fund Balance Oct 1, 2001 $ (4,269,831) Appropriations to (from) Fund Balance $ 2,614,498 Projected Fund Balance Sept 30, 2002 EXHIBIT C - FINAL BUDGET ENTERPRISE FUND CITY OF WINTER SPRINGS SUGGESTED CHANGES TO TENTATIVE BUDGET (PROPOSED FINAL CHANGES) FY 2002 $ 6,398,040 Tentative Revenue No Change $ $ 6,398,040 Proposed Final Revenue $ 9,619,500 Tentative Expense $ (8,900) Operating Fund - Decrease in Health Costs $ (8,900) Suggested Changes to Tentative Expense $ 9,610,600 Proposed Final Expense $ 7,135,300 Projected Fund Balance Oct 1, 2001 $ (3,212,560) Appropriations to (from) Fund Balance $ 3,922,740 Projected Fund Balance Sept 30, 2002