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HomeMy WebLinkAbout2022 07 07 Discussion Item 1 - FY 2023 Budget Overview and Discussion • DISCUSSION ITEMS ITEM 1 d CITY COMMISSION AGENDA I JULY 7, 2022 WORKSHOP 1959 TITLE FY 2023 Budget Overview and Discussion SUMMARY The Proposed Fiscal Year 2023 Budget for all City funds combined is approximately $58.7M (excluding appropriations to fund balance), and represents a $4.2M or 7.7%, increase over the prior fiscal year's budget. Total proposed General Fund spending of$20.1 M represents a $1 .4M increase or 7.3% over the prior fiscal year. After careful review of expenditures necessary to maintain high quality government service and well-maintained public infrastructure, the FY 2023 budget was balanced with proposed operating millage rate of 2.4100 per $1,000 of value. The proposed millage rate remains unchanged from the prior fiscal year. RECOMMENDATION Staff requests the Commission engage in a discussion of the FY 2023 budget attached herein. 1 ��NTER � `SA O •p F= * G7 U U1 Incorporated 1959 CITY OF WINTER SPRINGS PROPOSED BUDGET AA FISCAL YEAR 2023 . y`y `K f r' l.• s:^:_f THIS PAGE INTENTIONALLY LEFT BLANK +r � Incorporated 1959 3 TABLE OF CONTENTS Page Number Print Version 1.Budget Message City Manager's Executive Summary i-xiii Source&Application of Funds-Organization-Wide by Fund Type 1 Source&Application of Funds-Organization-Wide by Category 2 Source&Application of Funds-Organization-Wide by Classification 3 Source&Application of Funds-Organization-Wide by Function 4 Fund Balance/Fund Equity 5 Major Revenues 7 Personnel 13 Debt Service 15 Total Capital Outlay 18 2.Financial and Organizational Structure Current Leadership 21 Organizational Chart 22 Financial/Fund Structure 23 Budget Process and Calendar 27 Budget,Financial,and Management Guidelines 29 3.Budget Data GENERALFUND General Fund Fiscal Policy Tests 31 General Fund Sources by Classification 32 General Fund Applications by Function 33 General Fund Sources-Non-Departmental 34 General Fund Sources-Departmental 35 General Fund Applications by Department 36 Department/Division: Executive-Applications/Personnel 38 1100 Commission 40 1200 City Manager 41 1210 City Clerk 42 General Government -Applications 43 1400 Legal Services 45 1900 General 46 Finance-Applications/Personnel 47 1300 General 49 1310 Human Resources 50 1360 Utility Billing&Customer Service 51 1920 Risk Management 52 Information and General Services-Applications/Personnel 53 1315 Human Resources 55 1600 Information Services-General 56 1910 Information Services-City Hall 57 1925 Risk Management 58 1935 Facilities Maintenance 59 7415 Marketing and Community Events 60 Public Works-Applications/Personnel 61 4100 Administration 63 4110 Roads and Rights of Way(ROW) Maintenance 64 1930 Facilities Maintenance 65 1940 Fleet Maintenance 66 Community Development-Applications/Personnel 67 1500 Administration 69 1510 Long-Range Planning 70 1520 Urban Beautification 71 1530 Streetlighting 72 4 TABLE OF CONTENTS Page Number Print Version Police-Applications/Personnel 73 2100 Office of the Chief 75 2110 Criminal Investigations 76 2120 Community Services 77 2130 Operations 78 2135 Special Operations 79 2140 Support Services 80 2150 Code Enforcement 81 Fire-Applications/Personnel 82 2200 Operations 84 Parks and Recreation-Applications/Personnel 85 7200 Administration 87 7210 Athletics 88 7220 Partnerships 89 7230 Parks&Grounds 90 7240 Program&Special Events 91 7250 Seniors 92 7400 Community Events 93 OTHER GOVERNMENTAL FUN '+ Sources Recap by Fund 94 Applications Recap by Fund 95 Source and Application of Funds-Multi-Year by Category 96 Special Revenue Funds 101 Police Education 97 102 Special Law Enforcement Trust-Local 98 103 Special Law Enforcement Trust-Federal 99 120 Transportation Improvement 100 121 Infrastructure Surtax Fund 101 130 Solid Waste/Recycling 104 140 Arbor 105 150 Transportation Impact Fee 106 151 Police Impact Fee 107 152 Fire Impact Fee 108 153 Park Impact Fee 109 180 American Rescue Plan 110 Tuscawilla 160 TLBD Maintenance 111 261 TLBD Debt Service 112 162 Tuscawilla Phase III Special Assessment 113 Oak Forest 161 Oak Forest Maintenance 116 Debt Service 202 1999/2011 Debt Service 117 240 Central Winds General Obligation Debt Service 118 Capital Project 301 1999 Construction 119 302 Revolving Rehabilitation 120 303 Perk Up Parks 121 305 Excellence in Customer Service Initiative 122 5 TABLE OF CONTENTS Page Number Print Version ENTERPRISE FUN Enterprise Funds Overview by Classification 123 Enterprise Funds Recap 124 410-Water and Sewer Utility-Overview&Personnel 125 3600 Sources 127 3600 Applications 128 412-Water and Sewer Service Availability 130 411-Stormwater Utility-Overview&Personnel 131 3800 Applications-Operations 134 3810 Applications-Engineering 135 420-Development Services-Overview&Personnel 136 2400 Plans and Inspections Division 138 Appendix Glossary 139 Please note:In order to enhance the readability of this document rows with zeros have been suppressed. Efforts have been taken to unhide all rows with activity but dueto the volume of accounts and then umber of fiscal years represented in this document occasionally activity may exist in a hidden row. Such a limitation is confined to presentation only and will not affect the fund balance or the related appropriation. 6 THIS PAGE INTENTIONALLY LEFT BLANK Incorporated 1959 7 BUDGET MESSAGE s EXECUTIVE SUMMARY Respectfully submitted is the Proposed Fiscal Year 2023 Budget. The total Proposed Budget for all City funds combined is approximately $S8.7M (excluding appropriations to fund balance), and represents a $4.2M or 7.7%, increase over the prior fiscal year's budget. Total proposed General Fund spending of$20.1M represents a $1.4M increase or 7.3%over the prior fiscal year. After careful review of expenditures necessaryto maintain high quality government service and well-maintained public infrastructure,the FY2023 budget was balanced with proposed operating millage rate of 2.4100 per $1,000 of value.The proposed millage rate remains unchanged from the prior fiscal year. Funding Outlook Preliminary ad valorem taxable values, as provided by the Seminole County Property Appraiser (SCPA), are projected to increase 10.8% in Fiscal Year 2023. At the proposed millage rate of 2.41 mills,the increase in taxable value is anticipated to result in $719,292 in increased propertytax revenues in the City's General Fund as compared to the FY 2022 budget.Of this increase, approximately 19% is attributable to new construction.An individual property owner's particular tax bill depends upon several factors including their property's valuation and taxable value, accumulated Save Our Homes savings, and the millage rate levied by the City as well as other agencies (School Board, County, SJRWMD, etc.). The City's proposed millage rate represents approximately 15% or 15 cents of every dollar, of a Winter Springs taxpayer's total property tax bill. Exclusive of a projected ad jA valorem revenue increase, overall General Fund revenue sources for Fiscal Year 2023 are budgeted to increase as we rebound in this post-COVID environment, resulting ' in an approximate 5.1% increase in those revenues from the prior fiscal yea r. Budget Methodology The City's Fiscal Year 2023 Proposed Budget continues to utilize our concerted, proactive budgeting approach and related strategies that were implemented effective with our Fiscal Year 2010 Budget. These measures, including personnel reorganizations (as warranted and appropriate) and prioritizing project needs and zero-based budgeting, have positioned us to meet and overcome the challenges and limitations we mayface without raising our millage rate or reducing the outstanding levels of service provided to our citizens. This is a monumental task for Fiscal Year 2023 as we continue to face additional challenges such as labor and supply shortages, refurbishing and replacing wastewater infrastructure that is over 50 years old, and steadily increasing inflation costs. Personnel and related expenditures represent approximately 63.1% of total General Fund expenditures, therefore, it is important that these costs be closely examined and monitored on an ongoing basis. Evaluation of market salaries and benefits are regularly conducted to ensure a high level of retention and recruitment. We continue to examine, as demonstrated in this FY 2023 budget, our overall staffing structure for potential additional reorganizations and opportunities in order to ensure we have the most efficient and effective use of our limited resources. Executive Summary I Page i 9 Finally, preparation of our Fiscal Year 2023 Budget was facilitated with the continued utilization of a zero-based budgeting paradigm. This technique,which reverses the working process of traditional incremental budgeting, is aimed at ensuring that only a justifiable and defensible level of expenditures is appropriated, thus facilitating our ability to continue to provide our citizens with a millage rate that reflects only that which is justly required for the provision of City services. A Look Back The Fiscal Year 2023 budget is the 13th budget that I have had the privilege of developing in my tenure at the City. During this tenure, we, as a team, have made significant strides in our effort to stabilize and improve our fiscal posture, to the ultimate benefit of our taxpayers. A few notable outcomes from this period are as follows: ■ Balanced the Budget for the past 13 years without raising the property tax rate (maintained or lowered the rate each year) ■ Improved City's Debt Position via 100% reduction in total outstanding debt for the General Fu nd. ■ Increased City's Credit Rating from AA toAA+. ■ Increased City's Pension (Letter) Grade from FtoA. ■ Pension plan is 110.9%funded (as of October 2021) for the first time in the history of the Plan ■ Enhanced and expanded Community Events via partnerships and sponsorships rather than tax dollars,while focusing on inclusion opportunities for the entire community. In concert with our fiscal advances, we commensurately maintained or improved service levels during this same period as evidenced in part by: ■ Increased funding in several key service areas including the establishment of a multi-million dollar Parks Improvement Program, doubling the funding to our annual road infrastructure maintenance program,and providing multi-million dollar improvements to our Water/Sewer Utility System. ■ Being consistently named one of the top 10 safest cities in Florida by several publications, reaching as high as#3 in 2020 and #4 in 2021 ■ Being named one of the 100 Best Places to Live by Money Magazine. ■ Being ranked 3rd in Smart Travel's 10 Best Places to Live in Florida ■ Being ranked 1411 in the Chamber of Commerce- Best Cities to Live in Florida-2019 Summary information related to the Fiscal Year 2023 Proposed Budget is provided beginning on page iii. Committed to... Customer Service•Accountability• Human Capital Executive Summary I Page ii 10 OVERALL BUDGET REVENUES Based upon an operating millage assumption of 2.4100 mills, total revenues and transfers are projected to increase by 32.3% in FY 2023. Inclusive of appropriations from fund balance, a total increase of 22.7% is projected as follows: FY 21/22 FY 22/23 Original Proposed Budget Budget Change General $18,736,477 $20,107,054 7.3% Other Governmental $7,445,571 $18,083,368 142.9% Enterprise $14,576,928 $15,721,214 7.8% Sub-Total $40,758,976 $53,911,636 32.3% Appropriations From Fund Balance $13,754,069 $12,951,012 (S.8%) Total $54.513.045 $66.862.648 22.7% OVERALL BUDGET EXPENDITURE Total expenditures and transfers out are projected to increase by 7.7% in FY 2023. Inclusive of appropriations to fund balance, a total increase of 22.7% is projected as follows: FY 21/22 FY 22/23 Original Proposed Budget Budget Change General $18,736,477 $20,053,688 7.0% Other Governmental $15,065,478 $15,224,745 1.1% Enterprise $20,705,315 $23,439,633 13.2% Sub-Total $54,507,270 $58,718,066 7.7% Appropriations To Fund Balance $S,775 $8,144,582 Total $54.513.045 $66.862.648 22.7% OVERALL CHANGE IN FINANCIAL POSITION The year-end fund balance in the General Fund is projected to marginally increase. Year-end fund balances of the Other Governmental Funds (collectively) will be increased due in large part to anticipated APPA funding. The Enterprise Funds (collectively) are projected to have substantial decreases mainly due to budgeted capital in excess of$8M. FY 21/22 FY 22/23 Revised Proposed Ending Fund Ending Fund Bal/Equity Bal/Equity Change General $9,042,979 $9,096,345 0.6% Other Governmental $33,060,594 $35,919,217 8.6% Enterprise $19.806.570 $12,088.151 (39.0%) Total $61.910.143 $57.103.713 (7.8%) Executive Summary Page iii I ORGANIZATION-WIDE SOURCES OF FUNDS Source %of Tota/ Charges for Service 27.4% Interfund Transfers In Other Approp from Fund 19.4% OtherTaxesl/ 2.4% Licenses&Permits PP p f nchise F Ad Valorem Tax 11% 7.1%e 3.5% 1.5% Intergovernment 24.7% g Charges for Service Other Taxes 7,1% intergovernment 27 4% 24.7% -� Interfund Transfers In 3.1% Franchise Fee 3.5% Other 2.4% Licenses& Permits 1.5% Ad Valorem Tax `Approp from Fund 100.0% 11.0% 19.4% ORGANIZATION-WIDE APPLICATIONS OF FUNDS Application %of Tota/ Personnel 23.3% InterfundTransfers Other CapitalOutla 27.0% Out 4.4% y Repair and Debt ServiA,1 Approp to Fund Services 9.4% Maintenance S 7i 12.2% Utilities 8.0% 7.1% Repair and Maintenance 7.1% utilities - 8.0% Debt Service 5.7% Interfund Transfers Out 3.1% Personnel Other 4.4% services 23.3% 9.4% Approp to Fund 12.2% Capital Outlay 100.0% 27.0% Executive Summary I Page iv 12 1 GENERAL FUND SOURCES OF FUNDS Source %of Tota/ Ad Valorem Tax 36.6% Communication Service Tax Interfund Transfers In Other 0 Utility Tax 17.1% Intergovernment-Rex 6.0% 3.9 .s.4% Intergovernment- Half-Cent 13.0% Sharing \ 1 6.4% Franchise Fee 11.7% Franchise Fee Intergovernment- Rev Sharing 6.4% 11.7% Communication Service Tax 6.0% Ad Valorem Tax Interfund Transfers In 3.9% 36.6% Intergovernment- Other 5.4% Half-Cent 13.0% 100.0% Utility Tax 17.1% Ad Valorem In order to fund the FY 2023 Proposed Budget a total millage rate of 2.4100 mills is proposed. FY 21/22 FY 22/23 Change Operating Millage Rate 2.4100 2.4100 (0.0000) Incorporating the unchanged FY 2023 County MSTU millage rate (still preliminary), the combined proposed millage rate to City taxpayers of S.1749 which remains flat from the prior fiscal year as follows: FY 21/2 FY 22/23 Change Operating Millage Rate 2.4100 2.4100 (0.0000) County MSTU (prelim) 2.7649 2.7649 0.0000 Tota I 5.1749 5.1749 (0.0000) At 2.4100 mills, the FY 2023 operating millage rate is estimated to be 9.22% more than the "rolled- back" rate of2.2066 mills, based on the preliminary ad valorem tax base as provided by the Seminole County Property Appraiser. Executive Summary I Page v 13 1 The preliminary FY 2023 ad valorem tax base compares to the base for FY 2022 as follows: FY 21/22 FY 22/23 DR-420 (DR-420*) Change $2,867,838,505 $3,178,736,085 $310,897,580/10.8% *Includes New Construction totaling$60,792,879 Based on prel iminaryvaIuations and the proposed operating miIlage rate, projected FY 2023 net ad valorem revenues are expected to increase $719,292 or 10.8% as follows: FY 21/22 FY 22/23 (Adopted) DR-420 Change $6,635,032 $7,354,324 $719,292/10.8% State Shared Revenues (Revenue Sharing and Half-Cent Sales Tax) FY 2023 State Shared revenues are budgeted to increase by$180,684 or 4.9% as follows: FY 21/22 FY 22/23 Change $3,713,840 $3,894,524 $180,684/4.9% Local Communication Services Tax Projected FY 2023 General Fund revenues from Local Communication Service Taxes are budgeted to increase by$105,000 or 9.5% as follows: FY 21/22 FY 22/23 Change $1,100,000 $1,205,000 $105,000/9.5% Electric Utility and Franchise Fee Effective March 2014, the City executed a 10-year franchise agreement with Duke Energy that maintains a franchise fee of 6%on base revenue. In total, projected FY 2023 General Fund revenues from Electric UtiIityTaxes and Electric Franchise Fees are budgeted to increase as follows: FY 21/22 FY 22/23 Change $4,895,850 $4,975,500 $79,650/1.6% Executive Summary I Page vi 14 1 Other General Fund Sources Other General Fund sources that includes interfund transfers are expected to increase $285,951 or 12% as shown below. This increase is comprised of many accounts all with marginal increases. FY 21/22 FY 22/23 Change $2,391,755 $2,677,706 $285,951 /12% WATER &SEWER SOURCES Sources in the Water and Sewer Operating Fund are projected to increase by$1,088,786 or 8.8% as follows due primarily to anticipated increases in water,sewer and reclaimed revenues. FY 21/22 FY 22/23 Change $12,413,928 $13,502,714 $1,088,786/8.8% For FY 2023, potable water, sewer and reclaimed water rates will be indexed to the CPI of 8% (estimate) effective October 1, 2022. The City's comparative rate position remains in the general bottom half of rates charged by other neighboring utility systems. In Fiscal Year 2020 the City contracted with Veolia Water North America - South, LLC (Veolia) to assume the operation, maintenance, and management services for the City's drinking water treatment, wastewater treatment, and reuse utilities. Additionally, water quality improvements at Water Treatment Plant#1 were completed and the funding for the project was secured via the State Revolving Loan Fund with no additional debt or cost to the residents. Key assets of the City's wastewater treatment plants are at the end of their almost 50-year useful lives. This budget continues to address many of the initiatives to replace or rehabilitate necessary infrastructure in a cost-effective and sustainable manner. Priority repairs have been completed at some of the wastewater treatment plants and continue while planning and designing is underway for new, higher efficiency,wastewater plants to be built. The City has completed design for reclaimed expansion along SR 434; this project will involve the installation of a 12" reclaimed water main. At Water Treatment Plant No. 1, the supply header has been upgraded- increasing throughput capacity by 30%. Control and chlorine system automation has been optimized to improve disinfection efficiency, and balancing injection ratios to match demand resulting in a chlorine consumption reduction of 50%. DEVELOPMENT SERVICES REVENUES Revenues in the Development Services Fund are projected to marginally increase by$22,000 or 2.3% as follows: FY 21/22 FY 22/23 Change $955,000 $977,000 $22,000/2.3% Diversification of the property tax base (residential and commercial) remains an important focus for the City. Single-family Residential construction remains strong,with over 500-units currently under construction, including the 114-unit Winter Springs Townhome Subdivision. The demand for retirement housing is also strong, with vertical construction complete on the Savoy Retirement Executive Summary I Page vii 15 1 Residence in the Town Center. Commercial development demand is increasing in terms of new construction of the Winter Springs Marketplace Shopping Center and Chase Bank. The occupancy of previously vacant tenant space is also trending in a positive direction. OTHER RATES AND CHARGES Oak Forest Wall Maintenance & Debt Service Funds The Oak Forest Maintenance assessment remains unchanged at $60/BU as compared to the legal maximum of$63/13U. The internal refinancing of the Oak Forest Debt allowed for early retirement. This instrument was fully retired in FY 2017, which was also the final year for the annual capital assessment. TLBD Maintenance & Debt Service Funds- Phases I and II The TLBD Maintenance assessment has been unchanged since FY 2010 when the annual assessment was decreased to $120/ERU from the legal maximum of $128/ERU. For FY 2023, no changes are proposed. A $7 per ERU decrease was programmed into the FY 2015 Budget for the Phase I TLBD Debt Service (from $43/ERU to $36/ERU annually) and that proposed assessment remains unchanged. The assessment for this fund may not be sufficient due to significant inflation and increased labor costs and will require reevaluation in 2023. Tuscawilla III Special Assessment Fund The Tuscawilla III assessment district has both a capital and maintenance assessment. The capital assessment is utilized for the annual debt service on an internal 20-year loan, which financed a capital project relative to the existing Tuscawilla Units 12/12A wall. There is no proposed increase to the capital assessment of$8S/BU or the maintenance assessment of$87/BU as they are each at the legal maximum of $85/BU and $87/13U, respectively. The assessment for this fund is not sufficient and will require reevaluation in 2023. Infrastructure Surtax Fund In May of 2014, a countywide precinct referendum resulted in an additional 1% (i.e. 1 cent) local government infrastructure sales surtax upon taxable transactions occurring in Seminole County. The tax went into effect on January 1, 2015 and will expire December 31, 2024. The proceeds are to be utilized for public infrastructure projects and are distributed 25% to the School Board, 24.2% to the County with the remaining 50.8% of net revenues distributed according to a statutory formula to the County and all Seminole municipalities. Per the interlocal agreement, the Winter Springs' distribution percentage is 2.99°/x, which may be utilized for public infrastructure as defined in the Florida statutes [Section 212.055(2)(d)]. Solid Waste Fund The City entered into a Solid Waste Franchise Agreement with Waste Pro of Florida, Inc. on March 1, 2006 at a monthly rate for residential customers of$18.10.This rate will be assessed and will require an increase. The weekly service includes two solid waste, one recycling and one-yard waste Executive Summary I Page viii 16 1 pickup. The recent competitive bidding experiences of other nearby municipalities and counties did not result in favorable outcomesfor their residents.As a result of that evaluation,staff recommended that the Commission grant a long-term extension to Waste Pro of Florida because such extension would be more economically advantageous to the citizens of Winter Springs than competitively bidding solid waste services in the current market.That long term extension was authorized on May 10, 2021 with Ordinance 2021-03 and became effective March 1, 2022, after the expiration of the previous addendum,and will remain in effect through February 28,2027 with three additional 1 year extensions available upon mutual consent. Impact Fee Funds In 2016, the City Commission adopted Ordinance 2016-10 amending the City's transportation impact fee schedule. For most commercial and residential land uses,the new transportation impact fees are significantly lower than the previous fees. In 2017,the City Commission adopted Ordinance 2017-16,which reduced police and fire impact fees while an increase was warranted for park impact fees. Impact fee revenues are not budgeted until received. The remainder of this page was intentionally left blank Executive Summary I Page ix 17 1 EXPENDITURE HIGHLIGHTS PERSONNEL COSTS Personnel costs include employee salaries, FICA, health and life insurance, worker's comp, and retirement benefits.These costs account for the majority of the City's operating expenditures. Some of the challenges we have faced in previous fiscal years,that continue to be a challenge into FY 2023 are a volatile labor market, increases to minimum wage, additional staffing needed to facilitate essential and significant infrastructure enhancements, increased inflation, and the impact of the baby boomer generation retiring in large numbers. In order to face these challenges and to maintain our competitive advantage for recruiting and retention, we regularly review processes searching for opportunities to enhance efficiencies or automate processes, we have made market adjustments to salaries and pay ranges, most notably in the police department; increased our headcount to meet with service level demands; and we have increased benefits available to employees. Personnel costs, totaling $15,555,775 are proposed to increase 8.1% over the prior fiscal year as follows: FY 21/22 FY 22/23 Original Proposed Budget Budget Change General $11,839,596 $12,690,624 7.2% Enterprise 2.546517 2.865,151 12.5% Total $14,386,113 $15,555,775 8.1% Staffing and Wages - Full-time headcount is increased this year to be more in line with previous years and to provide for sufficient staffing to facilitate essential and significant infrastructure enhancements. The total full-time headcount for FY 2023 accompanied by trailing historical data follows: FY09 FY10 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Full- 234 228 i 187 181 172 177 158 174 175 Time Employees per 1,000 Residents 8.10 7.10 6.10 6.81 6.85 5.10 4.10 �5 �4�34 3.10 4.614.57 4.05 4.46 4.45 2.10 1.10 0.10 FY09 FY10 FY17 FM FY19 FY20 FY21 FY22 FY23 Executive Summary Page x 18 1 Pension - Funding of the City's Defined Benefit Pension Plan is an important and critical area of focus. Due to the nature of a Defined Benefit plan,the City is statutorily obligated to provide funding sufficient to keep the plan actuarially sound. In a typical Defined Benefit plan structure, market gains are expected to fund the majority of this financial obligation. However, when market conditions result in losses and an associated decrease in plan assets, the City is obligated to fund these losses to the extent necessary to make the plan "actuarially whole." Thus, a Defined Benefit plan and its associated benefit structure and contractual liability must be proactively monitored and reviewed in order to ensure the City's fiscal ability to meet its related statutory obligation, as well as to gauge and ensure the sustainability of the plan. Pension plan funding levels have improved significantly over the past thirteen years. The vested benefit security ratio increased from 48.8% in FY 2007 to 110.9%as of October 1,2021.This is primarily due to plan revisions and investment returns which averaged 9.25% in 3-year returns, 9.4% in 5-year returns, and 8.8% in 10-year returns.These returns were achieved without adding any unsystematic risk to the pension portfolio.The portfolio ranked in the top 1% percentile against its peers in the US as of 2021. Health Insurance- Effective in FY 2012,the City migrated away from an HMO-type health insurance plan in favor of Major Medical (high deductible) benefit plan structure, inclusive of an HSA (Health Savings Account). To meet the demands of the current labor market, we have offered a traditional PPO plan,as a buy-up option to employees, in addition to subsidizing dependent and family medical premiums. Additionally, the City continues its proactive healthcare program which includes: education, wellness programs and financial incentives. The City is committed to a balanced employer-employee cost sharing and accountability benefit plan. OPERATING COSTS FY 2023 Operating Costs, totaling $19,235,637 are proposed to increase 10.0%from the prior fiscal year as follows: FY 21/22 FY 22/23 Original Proposed Budget Budget Change General $5,132,880 $5,468,877 6.5% Other Governmental $4,859,712 $5,140,840 5.8% Enterprise $7.488.936 $8.625.920 15.2% Total $17,481,528 $19,235,637 10.0% Executive Summary Page A 19 1 General Fund changes in operating costs by department are as follows: FY 21/22 FY 22/23 Original Proposed Budget Budget Change Information &General Gov't $1,234,410 $1,033,330 (16.3%) Community Development $1,214,562 $1,409,350 16.0% Parks& Recreation $1,068,200 $1,220,438 14.3% Police $1,166,535 $1,295,421 11.0% Finance $210,913 $236,576 12.2% Public Works $163,743 $190,340 16.2% Executive $74,517 $83,422 12.0% Total $5,132,880 $5,468,877 6.S% The operating cost increase in the Police Department is due to aggressive recruitment, compensation,and retention strategies enacted to keep the City as an employer of choice for police officers in a volatile labor market. CAPITAL OUTLAY Capital Outlay includes capital improvements such as land, improvements to land and capital equipment defined as vehicles and equipment over $5,000 in value with a useful life greater than one year. FY 2023 Capital Outlay,totaling $18M is 14.9% more than last year's budget as follows: FY 21/22 FY 22/23 Original Proposed Budget Budget Change General $484,000 $619,186 27.9% Other Governmental $7,725,500 $8,657,880 12.1% Enterprise $7,506,000 $8,773,400 16.9% Total $15,715,500 $18,050,466 14.9% The substance of the FY 2023 capital budget appears in the Infrastructure Surtax Fund, Transportation-related Funds, Impact Fee Funds (Transportation, Park), Sewer Plant Replacement (ARPA/SRFL) Fund, Capital Project Funds and Enterprise Funds,which are funded by infrastructure surtax, developer fees, grants and/or user fees. A detailed capital list begins on page 18. GENERAL FUND FISCAL POLICY TEST Each year, the General Fund is tested to determine if the fund complies with three internal fiscal policies/guidelines as follows: 1. That sufficient recurring revenue exist to pay for all recurring costs,thus avoiding the use of non-recurring revenues and fund balances to fund recurring costs. Executive Summary I Page xii 20 T N 2. That sufficient recurring and non-recurring revenues are available to fund non-recurring costs. 3. That the 25% fund balance policy is being maintained (fund balance equal to or exceeding 25%of personnel and operating costs). All three policies are being satisfied for FY 2023. BUDGET CALENDAR A Commission workshop to consider the Fiscal Year 2023 Proposed Budget is scheduled for July 7, 2022. In accordance with TRIM law, a proposed millage rate is required to be adopted by August 4, 2022. Therefore, consideration and adoption of the tentative millage rate is scheduled for the July 111h regular Commission meeting. The first public hearing for adoption of the Fiscal Year2023 Budget is scheduled for September12,2022 and the final public hearing is scheduled for September 26,2022. ACKNOWLEDGEMENTS The budget process and this resulting document could not have been completed without the support of the Mayor and Commission and the diligent and cooperative efforts of the City's Department Directors and their staff. I would like to personally offer my sincere thanks to our entire team for their cooperation and support. Shawn Boyle City Manager Executive Summary I Page xiii THIS PAGE INTENTIONALLY LEFT BLANK Incorporated 1959 22 Source and Application of Funds Fiscal Year 2022-2023 Budget Adopted FY 19/20 FY 20/21 FY 21/22 FY 22/23 Fund Type Actual Actual Budget Budget General $18,339,313 $19,955,833 $18,736,477 $20,107,054 Other Governmental: Special Revenue $7,269,887 $7,929,212 $5,443,631 $16,051,923 Special Assessment $731,786 $721,698 $715,614 $716,644 Debt Service $2,137,682 $1,231,059 $1,280,276 $1,285,001 Capital Project $937,232 $913,253 $6,050 $29,800 Enterprise $17,337,865 $17,005,240 $14,576,928 $15,721,214 Total Sources (exclusive of approp) $46,753,765 $47,756,295 $40,758,976 $53,911,636 Total Appropriations FROM Funds $1,483,594 $2,280,945 $13,754,069 $12,951,012 Total Sources $48,237,359 $50,037,240 $54,513,045 $66,862,648 Adopted FY 19/20 FY 20/21 FY 21/22 FY 22/23 Fund Type Actual Actual Budget Budget General $18,102,030 $19,848,248 $18,736,477 $20,053,688 Other Governmental: Special Revenue $6,251,068 $8,439,858 $9,558,341 $10,275,183 Special Assessment $735,918 $745,797 $806,136 $834,061 Debt Service $2,135,000 $1,278,501 $1,277,501 $1,277,501 Capital Project $1,250,164 $373,345 $3,423,500 $2,838,000 Enterprise $9,810,123 $9,406,234 $20,705,315 $23,439,633 Total Applications (exclusive of approp) $38,284,303 $40,091,983 $54,507,270 $58,718,066 Total Appropriations TO Funds $9,953,056 $9,945,257 $5,775 $8,144,582 Total Applications* $48,237,359 $50,037,240 $54,513,045 $66,862,648 * Includes interfund transfers of: $4,701,724 $6,813,856 $3,059,338 $2,054,859 1 23 ALL FUNDS - SUMMARY Source/Application Category Original Revised FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 Actual Actual Budget Budget Budget SOURCES Revenues General $17,792,790 $19,421,977 $18,027,140 $18,261,428 $19,327,196 Other Governmental $7,561,386 $7,365,222 $6,165,570 $15,513,245 $16,808,367 Enterprise $16,697,865 $14,155,240 $13,506,928 $13,506,928 $15,721,214 TOTAL REVENUES $42,0$2,041 $40,942,439 $37,699,638 $47,281,601 $51,856,777 Transfers General $546,523 $533,856 $709,337 $709,337 $779,858 Other Governmental $3,515,201 $3,430,000 $1,280,001 $1,280,001 $1,275,001 Enterprise $640,000 $2,850,000 $1,070,000 $1,070,000 $0 TOTALTRANSFERS $4,701,724 $6,813,856 $3,OS9,338 $3,059,338 $2,054,859 Total Sources* $46,753,765 $47,756,295 $40,758,976 $50,340,939 $53,911,636 APPLICATIONS Personnel Services General $10,767,769 $11,351,316 $11,839,596 $11,558,506 $12,690,624 Other Governmental $0 $0 $0 $0 $0 Enterprise $2,342,689 $1,561,509 $2,546,517 $2,700,475 $2,865,151 TOTAL PAYROLL $13,110,458 $12,912,825 $14,386,113 $14,258,981 $15,555,775 Operating General $3,429,977 $3,555,622 $5,132,880 $5,429,557 $5,468,877 Other Governmental $4,512,099 $4,133,155 $4,859,712 $4,961,280 $5,140,840 Enterprise $6,685,673 $7,100,809 $7,488,936 $7,569,726 $8,625,920 TOTAL OPERATING $14,627,749 $14,789,586 $17,481,528 $17,960,563 $19,235,637 Debt Service General $0 $0 $0 $0 $0 Other Governmental $2,274,520 $1,409,933 $1,410,266 $1,410,266 $1,410,225 Enterprise $2,174,020 $1,579,208 $2,454,525 $2,454,525 $2,411,104 TOTAL DEBT SERVICE $4,448,540 $2,989,141 $3,864,791 $3,864,791 $3,821,329 Transfers General $3,230,000 $4,280,000 $1,280,001 $1,280,001 $1,275,001 Other Governmental $925,201 $2,000,000 $1,070,000 $1,070,000 $15,800 Enterprise $546,523 $533,856 $709,337 $709,337 $764,058 TOTALTRANSFERS $4,701,724 $6,813,856 $3,059,338 $3,059,338 $2,054,859 Capital General $674,284 $661,310 $484,000 $702,701 $619,186 Other Governmental $2,660,330 $3,294,413 $7,725,500 $5,767,000 $8,657,880 Enterprise $5,849,861 $3,020,127 $7,506,000 $7,365,752 $8,773,400 TOTAL CAPITAL $9,184,475 $6,975,850 $15,715,500 $13,835,453 $18,050,466 Total Applications* $46,072,946 $44,481,258 $54,507,270 $52,979,126 $58,718,066 * Total Sources and Applications are exclusive of Appropriations To/From Fund Balance. Total Applications for FY 19/20 and FY20/21 do not tie to Applications(prev.pg.sub-total) as a result of Enterprise Funds'expenditures which do not decrease fund equity due to balance sheet capitalization of$7,788,643 and$4,389,276,respectively. 2 24 organization-Wide Source and Application of Funds by Classification of Original %of %of Actuals Total Budget Total Budget Total Source FY27 FY22 FY23 Charges for Service $15,567,096 31.1% $15,556,589 28.5% $18,341,264 27.4% Intergovernment-Other $1,204,180 2.4% $618,820 1.1% $9,939,020 14.9% Ad Valorem Tax $6,291,085 12.6% $6,635,032 12.2% $7,354,324 11.0% Utility Tax $3,438,305 6.9% $3,277,910 6.0% $3,436,760 5.1% Intergovernment- Half-Cent $2,747,752 5.5% $2,661,360 4.9% $2,614,500 3.9% Intergovernment- Local Infrastructure $2,511,559 5.0% $2,200,000 4.0% $2,660,169 4.0% Franchise Fee $2,396,706 4.8% $2,300,333 4.2% $2,354,007 3.5% Interfund Transfers In $6,813,856 13.6% $3,059,338 5.6% $2,054,859 3.1% Intergovernment- Rev Sharing $1,509,708 3.0% $1,052,480 1.9% $1,280,024 1.9% Communication Service Tax $1,234,681 2.S% $1,100,000 2.0% $1,205,000 1.8% Licenses&Permits $1,330,335 2.7% $987,980 1.8% $981,665 1.5% Miscellaneous $888,746 1.8% $393,510 0.7% $768,920 1.1% Special Assessments $674,038 1.3% $715,124 1.3% $715,124 1.1% Fines&Forfeitures $420,570 0.8% $98,000 0.2% $103,500 0.2% Other Taxes $126,652 0.3% $102,500 0.2% $102,500 0.2% Impact Fees $580,806 1.2% $0 0.0% $0 0.0% Approp from Fund $2,280,945 4.6% $13,754,069 25.2% $12,951,012 19.4% Total Sources $50,037,240 100.0% $54,513,045 100.0% $66,862,648 100.0% of Original %of %of Actuals Total Budget Total Budget Total Application FY27 FY22 FY23 Capital Outlay $3,955,724 7.9% $15,715,500 28.8% $18,050,466 27.0% Personnel $12,912,825 25.8% $14,386,113 26.4% $15,555,775 23.3% Services $5,572,331 11.1% $5,643,389 10.4% $6,254,917 9.4% Utilities $4,806,967 9.6% $4,838,875 8.9% $5,338,826 8.0% Repair and Maintenance $2,308,095 5.0% $4,197,336 7.7% $4,716,750 7.1% Debt Service $1,619,992 3.2% $3,864,791 7.1% $3,821,329 5.7% Other Operating $1,085,595 2.2% $1,741,080 3.2% $1,665,931 2.5% Interfund Transfers Out $6,813,856 13.6% $3,059,338 5.6% $2,OS4,8S9 3.1% Supplies $479,818 1.0% $700,206 1.3% $778,176 1.2% Fuel $276,530 0.6% $301,774 0.6% $422,149 0.6% Grants&Aids $60,250 0.1% $58,868 0.1% $58,868 0.1% Approp to Fund $9,945,257 19.9% $5,775 0.0% $8,144,582 12.2% TotalApplications $50,037,240 100.0% $54,513,045 100.0% $66,862,648 100.0% 3 25 Organization-Wide Source and Application of Funds by Function Original Actuals %of Budget %of Budget %of Source FY27 Total FY22 Total FY23 Total Non-Department $19,616,803 39.2% $17,591,765 32.3% $28,326,000 42.4% Water&Sewer $13,618,712 27.2% $12,363,928 22.7% $13,422,714 20.1% Public Works $7,378,230 14.7% $5,505,137 10.1% $6,749,688 10.1% General Government $1,632,669 3.3% $1,281,026 2.3% $1,294,001 1.9% Stormwater $1,135,598 2.3% $1,196,000 2.2% $1,196,000 1.8% Protective Inspections $1,296,614 2.6% $943,000 1.7% $943,000 1.4% Community Development $1,624,125 3.2% $763,494 1.4% $755,009 1.1% Finance $719,543 1.4% $709,337 1.3% $764,058 1.1% Parks&Recreation $348,701 0.7% $236,304 0.4% $270,750 0.4% Police $301,269 0.6% $118,085 0.2% $116,916 0.2% Executive&Legislative $50 0.0% $48,500 0.1% $48,500 0.1% Fire $20,614 0.0% $2,400 0.0% $25,000 0.0% Information Services $63,367 0.1% $0 0.0% $0 0.0% Approp from Fund $2,280,945 4.6% $13,754,069 25.2% $12,951,012 19.4% Total Sources $50,037,240 100.0% $54,513,045 100.0% $66,862,648 100.0% Original Actuals Budget %of Budget %of Application FY27 FY 22 Total FY23 Total Water&Sewer $7,249,967 14.5% $17,217,439 31.6% $20,968,300 31.4% Public Works $10,128,180 20.2% $12,192,961 22.4% $11,104,450 16.6% Police $6,888,927 13.8% $7,249,725 13.3% $7,734,449 11.6% Community Development $2,700,322 5.4% $4,412,552 8.1% $4,696,712 7.0% Parks&Recreation $2,690,597 5.4% $2,589,039 4.7% $2,942,517 4.4% General Government $3,799,519 7.6% $2,553,118 4.7% $2,514,541 3.8% Information&General Services $2,467,596 4.9% $2,670,372 4.9% $2,716,734 4.1% Protective Inspections $1,272,906 2.5% $2,079,026 3.8% $2,295,617 3.4% Finance $1,149,503 2.3% $1,357,689 2.5% $1,513,153 2.3% Stormwater $883,361 1.8% $1,408,850 2.6% $1,541,516 2.3% Executive&Legislative $582,411 1.2% $612,491 1.1% $690,077 1.0% Fire $278,694 0.6% $164,008 0.3% $0 0.0% Non-Department $0 0.0% $0 0.0% $0 0.0% Approp to Fund $9,945,257 19.9% $5,775 0.0% $8,144,582 12.2% TotalApplications $50,037,240 100.0% $54,513,045 100.0% $66,862,648 100.0% 4 26 PROJECTED CHANGES IN FUND BALANCE Governmental Funds- Major/Non-Major in the Aggregate Original Revised FY 21/22 FY 21/22 FY 22/23 Budget Budget Budget GENERAL FUND Sources $18,736,477 $18,970,765 $20,107,054 Applications $18,736,477 $18,970,765 $20,053,688 Appropriation To(From) Fund Balance $0 $0 $53,366 FUND BALANCE-October 1 $8,824,620 $9,042,979 $9,042,979 Appropriation TO (FROM) Fund Balance $0 $0 $53,366 FUND BALANCE-September 30 $8,824,620 $9,042,979 $9,096,345 OTHER GOVERNMENTAL FUNDS (Major funds in this grouping are shown separately below) Sources $7,445,571 $16,793,246 $18,083,368 Applications $15,065,478 $13,208,546 $15,224,745 Appropriation To(From) Fund Balance ($7,619,907) $3,584,700 $2,858,623 FUND BALANCE-October 1 $23,989,307 $29,475,894 $33,060,594 Appropriation TO (FROM) Fund Balance ($7,619,907) $3,584,700 $2,858,623 FUND BALANCE-September 30 $16,369,400 $33,060,594 $35,919,217 SOLID WASTE FUND Sources $2,683,736 $2,683,736 $3,265,339 Applications $3,112,500 $3,112,500 $3,259,646 Appropriation To(From) Fund Balance ($428,764) ($428,764) $5,693 FUND BALANCE-October 1 $1,614,841 $2,336,084 $1,907,320 Appropriation TO (FROM) Fund Balance ($428,764) ($428,764) $5,693 FUND BALANCE-September 30 $1,186,077 $1,907,320 $1,913,013 INFRASTRUCTURE SURTAX FUND Sources $2,218,000 $2,218,000 $2,760,169 Applications $3,792,000 $3,792,000 $2,763,380 Appropriation To(From) Fund Balance ($1,574,000) ($1,574,000) ($3,211) FUND BALANCE-October 1 $6,587,444 $7,971,524 $6,397,524 Appropriation TO (FROM) Fund Balance ($1,574,000) ($1,574,000) ($3,211) FUND BALANCE-September 30 $5,013,444 $6,397,524 $6,394,313 OTHER GOVERNMENTAL FUNDS-NON-MAJOR FUNDS in the aggregate Sources $2,543,835 $11,891510 $12,057,860 Applications $8,160,978 $6,304,046 $9,201,719 Appropriation To(From) Fund Balance ($5,617,143) $5,587,464 $2,856,141 FUND BALANCE-October 1 $15,787,022 $19,168,286 $24,755,750 Appropriation TO (FROM) Fund Balance ($5,617,143) $5,587,464 $2,856,141 FUND BALANCE-September 30 $10,169,879 $24,755,750 $27,611,891 5 27 PROJECTED CHANGES IN FUND EQUITY Enterprise Funds sommonommum- Original Revised FY 21/22 FY 21/22 FY 22/23 Budget Budget Budget ALL ENTERPRISE FUNDS Sources $14,576,928 $14,576,928 $15,721,214 Applications(includes capital,principal reduction,if $20,705,315 $20,799,815 $23,439,633 applicable) Appropriation TO(FROM) Fund Equity ($6,128,387) ($6,222,887) ($7,718,419) Net Assets less Net Capital (less Renewal/Replacement,Restricted) FUND EQUITY'-October 1 $21,391,312 $26,029,457 $19,806,570 Appropriation TO(FROM) Fund Equity ($6,128,387) ($6,222,887) ($7,718,419) FUND EQUITY-September 30 $15,262,925 $19,806,570 $12,088,151 WATER&SEWER(Utility&Service Availability) Sources $12,425,928 $12,425,928 $13,536,214 Applications(includes capital,principal reduction,if $17,217,439 $17,299,439 $19,602,500 applicable) Appropriation TO(FROM) Fund Equity ($4,791,511) ($4,873,511) ($6,066,286) Net Assets less Net Capital (less Renewal/Replacement,Restricted) FUND EQUITY'-October 1 $13,258,095 $17,813,891 $12,940,380 Appropriation TO(FROM) Fund Equity ($4,791,511) ($4,873,511) ($6,066,286) FUND EQUITY'-September 30 $8,466,584 $12,940,380 $6,874,094 DEVELOPMENT SERVICES Sources $955,000 $955,000 $977,000 Applications(includes capital,principal reduction,if $2,079,026 $2,091,526 $2,295,617 applicable) Appropriation TO(FROM) Fund Equity ($1,124,026) ($1,136,526) ($1,318,617) Net Assets less Net Capital FUND EQUITY'-October 1 $5,663,561 $6,105,027 $4,968,501 Appropriation TO(FROM) Fund Equity ($1,124,026) ($1,136,526) ($1,318,617) FUND EQUITY'-September 30 $4,539,535 $4,968,501 $3,649,884 STORMWATER Sources $1,196,000 $1,196,000 $1,208,000 Applications(includes capital,principal reduction) $1,408,850 $1,408,850 $1,541,516 Appropriation TO(FROM) Fund Equity ($212,850) ($212,850) ($333,516) ban: et Assets less Net Capital FUND EQUITY'-October 1 $2,469,656 $2,110,539 $1,897,689 Appropriation TO(FROM) Fund Equity ($212,850) ($212,850) ($333,516) FUND EQUITY-September 30 $2,256,806 $1,897,689 $1,564,173 For the Enterprise Funds,the budgeted fund equity excludes net capital and that portion of fund balance that is restricted,therefore,it will not tie to ACFR fund equity balances. 6 28 REVENUES Ad Valorem Taxes Ad valorem taxes represent the largest single revenue source to the City's General Fund. For the proposed budget year, the ad valorem revenue budget accounts for 37% of the total budgeted revenue for the General Fund. The amount of ad valorem revenue generated is a function of the gross final taxable value as established by the Seminole County Property Appraiser and the millage rate (per thousand dollars of property valuation) established by the City Commission. The following graph shows the final gross taxable value (DR-403) for the last ten fiscal years. Please note that the valuation identified for fiscal year 2023 is not the final valuation but rather the valuation as submitted by the Property Appraiser (Early Estimate/DR420). Fiscal Year Tax Year Final Gross Taxable Value Percentage from DR-403 Incr (Decr) 2014 2013 $1,639,667,121 4.3% 2015 2014 $1,748,258,752 6.6% 2016 2015 $1,843,713,578 5.5% 2017 2016 $1,961,341,503 6.4% 2018 2017 $2,147,274,968 9.5% 2019 2018 $2,293,968,241 6.8% 2020 2019 $2,509,878,198 9.4% 2021 2020 $2,708,235,730 7.9% 2022 2021 $2,854,767,219 5.4% DR-420 $3,178,736,085 Final Gross Taxable Value (DR403) FY 2023 - D R-420 $3,500 $3,000 o $2,500 $2,000 C- $1500 $1,000 $500 2�1� ti01� 216 201 ti�1g ti0�� TO tie�1 Ze2L ��20 202 O Fiscal Year 7 29 REVENUES Ad Valorem Taxes (cont'd) Florida Statute 200.065-Truth in Millage Bill(TRIM): This statute went into effect with fiscal year 1982. This law will only allow a taxing authority to receive the same dollar amount of property tax in each subsequent year without advertising a tax increase. If propertyvalues increase,exclusive of new construction,the taxing authority is required to reduce,or roll back,the millage rate in order to receive the same tax dollars as the previous year. Any millage in excess of the rolled-back millage is considered a tax increase and must be publicly advertised. Additionally,any tax increase must be publicly announced at two public hearings prior to the budget adoption. The following chart shows the millage history, both operating and voted debt,for the City of Winter Springs for the last ten fiscal years. Millage Rate Fiscal Year Tax Year Operating Voted Debt Total Millage 2014 2013 2.4300 0.1100 2.5400 2015 2014 2.4300 0.1100 2.5400 2016 2015 2.4300 0.1100 2.5400 2017 2016 2.4300 0.0700 2.5000 2018 2017 2.4300 0.0600 2.4900 2019 2018 2.4300 0.0500 2.4800 2020 2019 2.4300 0.0000 2.4300 2021 2020 2.4100 0.0000 2.4100 2022 2021 2.4100 0.0000 2.4100 2023; 2Q22 0.0000 Operating &Voted Debt Millage Rates 3.0 - 2.8 2.6 2.4 2.2 2.0 1.8 1.6 1.4 - 1.2 - 1.0 ,Lp1� yo1�' 2016 �,01� y01g �01� ,L020 ti0�1 222 202 ■Operating ■Voted Debt Total Ad Valorem Includes Operating and Voted Debt 10 with statutory discount applied 9 8 6 7 = 6 4 3 2 261 2o1y 20,6 ,L01� 2018 ,L�1� 'L�0"0 221 'L2��dge� 2'P'Jdge� Fiscal Year Tc, 20 8 30 REVENUES Electricity and Communication Services Tax [Utility taxes-Sections 7-2,Art. VIII State Constitution, Municipal Ordinances 751, 2007-42, 2005-73; Communication Services Tax-Sections 202.79(1), Florida Statutes] The following chart reflects eight years of historical data for the major revenue sources as well as estimates for our current fiscal year and proposed budget.These revenue streams flow through the General Fund and are obligated for debt service. The electric utility and communication service tax revenues represent 14% and 6%of the budgeted revenues, respectively. Electricity& Communication Service Tax $3,500 $3,000 Ln $2,500 ra Ln 0 $2,000 0 $1,500 $1,000 $500 $0 -ap � 2�212���d�e� ��d�e� Fiscal Year �0 20 ■Electricity ■Communication Services 9 31 REVENUES Electric Franchise Fees [Home Rule Authority- Sections 7-2, Art. Vlll, State Constitution] Electric franchise fee revenue from Duke Energy goes directly to the General Fund and is utilized for the annual debt service requirements via transfers to the debt service fund. The following chart reflects historical data for this revenue source. The current and upcoming fiscal year projections are based on a weighted-average trend analysis. Electric Franchise Fee revenues represent 11% of the General Fund budgeted revenues. Electric Franchise Fees $3,000 $2,500 $2,000 - w o $1,500 $1,000 $500 $0 TO1� 201 2018 ti0�� y020 Lo21o22;?5"d°e1?5"d�e� 2 2 Fiscal Year Inter-fund Transfers-In Inter-fund transfers may be recurring or non-recurring in nature. An example of a non- recurring transfer would be one related to a short-lived special project or grant activity. Many of the recurring transfers are the result of central service costs being allocated to the funds to which those costs relate, i.e. Utility Billing (Division #1360). The following list represents those transfers which exceed 1% of total sources of the receiving fund along with the anticipated amount and reason for transfer: Fund Amount Reason for Transfer 1999 Debt Service Fund (#202) $1,275,001 From the General Fund for debt service requirements related to the Series 1999 US Bank note General Fund (#001) $764,058 From Water&Sewer-cost allocation for the Utility Billing division of the Finance department 10 32 REVENUES Major Inter-Governmental Revenues State-Shared Revenues There are a number of taxes imposed by the State and shared with counties, municipalities and school districts. Based on eligibility requirements the state allocates a portion of state-collected taxes to specified local governments. Two of the state-shared revenues which provide a significant percentage of total fund revenues for the General Fund are Municipal Revenue Sharing and Local Government Half-Cent Sales Tax. Municipal Revenue Sharing Program (Sections 206.60S(7), 206.879(1), 272.20(6), and 218.20-.26, Florida Statutes] In order to ensure a certain level of parity across local government units the Florida Revenue Sharing Act of 1972 was enacted. Typically, legislation is passed each year that could potentially impact the amount of sales tax revenues available for distribution to municipal governments. Florida's Legislative Committee on Intergovernmental Relations (LCIR) provides projections which are the basis for the budget. During the current fiscal year, it is expected that this revenue will contribute approximately 6.4% of total General Fund revenues. Local Government Half-Cent Sales Tax Program [Sections 272.20(6) and 218.60-.66, Florida Statutes] This program which was authorized in 1982 is the largest revenue generator among the state-shared revenue sources. The program's primary purpose is to provide funding for local programs while offering relief from ad valorem and utility taxes. Distribution is based on allocation formulas. During the current fiscal year, it is expected that this revenue will contribute approximately 13% of total General Fund revenues. Municipal Revenue Sharing & Half-Cent Sales Tax $3,000 $2,500 � $2,000 M $1,500 $1,000 $500 $0 2�1� 2�1� 201 2�1� 2�1g 201 220 `L0�2o22�J,d�Ze� Fiscal Year ■Revenue Sharing ■Half-Cent Sales Tax 11 33 REVENUES Intergovernmental Revenues (cont'd) Local Discretionary Sales Surtax [Sections 272.OS4-.OSS, Florida Stotutes] There are seven types of local discretionary sales surtaxes currently authorized for county and municipal government revenue sources. The infrastructure surtax is also referred to as local option sales taxes.There have been three generations of infrastructure surtax. The first generation was a 1% surtax which became effective in Seminole County on October 1, 1991 and expired on September 30, 2001; the second generation became effective on January 1,2002 and expired on December 31,2011. A third generation of this 1% sales surtax was approved by voters in May 2014 and became effective on January 1,2015 and will expire December 31, 2024. The revenue and expenditure budget relative to the third generation infrastructure surtax will be accounted for in the Infrastructure Surtax Fund [previously identified as the Road Improvements Fund (#121)] and will primarily be utilized for transportation-related projects and other public infrastructure. Charges for Services [Utility Fees-Home Rule Authority Sections 1-2,Art. V/ll,State Constitution] The Water and Sewer Utility Fund and the Stormwater Funds are enterprise funds with a customer base of approximately 14,200 whose primary revenue streams consist of charges for service. The Solid Waste fund is a special revenue fund established to account for fees for solid waste and recycling services performed by contract vendors. The City retained a consultant to review the adequacy of all utility rates,fees and charges for the operation, maintenance, replacement and debt service of the water and wastewater systems. Rate increases (with CPI adj) were warranted, approved and implemented with the billing cycles in October 2009. The following chart indicates two years of rate history for potable water, reclaimed water, irrigation-metered water, and sewer. Charge Type Water(3/4"meter) Water-3/4"Reclaimed Water-3/4"Irrigation Sewer Meters 2021 2022 2023* 2021 2022 2023* 2021 2022 2023* 2021 2022 2023* Base facility charge $6.18 $6.68 $7.22 $4.68 $5.06 $5.47 N/A N/A N/A $12.14 $13.12 $14.17 Consumption rates per 1000 gallons: 0-5,000 $1.52 $1.65 $1.79 $0.89 $0.96 $1.03 $2.09 $2.21 $2.39 $5.00 $5.40 $5.84 5,000-10,000 $1.52 $1.65 $1.79 $1.12 $1.21 $1.31 $2.77 $2.92 $3.16 $5.00 $5.40 $5.84 10,001 to 15,000 $2.21 $2.39 $2.59 $1.55 $1.68 $1.82 $3.40 $3.58 $3.86 N/A N/A N/A 15,001-20,000 $2.92 $3.16 $3.42 $1.74 $1.88 $2.04 $4.48 $4.72 $5.09 N/A N/A N/A 20,001-25,000 $3.58 $3.86 $4.16 $2.55 $2.75 $2.97 $6.20 $6.54 $7.07 N/A N/A N/A 25,001-30,000 $4.72 $5.09 $5.49 $2.55 $2.75 $2.97 $6.20 $6.54 $7.07 N/A N/A N/A 30,001 and over $6.54 $7.07 $7.64 $2.55 $2.75 $2.97 $6.20 $6.54 $7.07 N/A N/A N/A Sewer is only charged on the first 10,000 gallons * 2023 rates reflect an estimated 8%CPI increase Stormwater-$5.50/month per Equivalent Residential Unit(ERU) Solid Waste(garbage and recycling)-$18.10/month (anticipated rate revision in Jan 2023-$22.90) Additional cart rate -$10.55/month 12 34 ORGANIZATION WIDE-PERSONNEL SUMMARY Budgeted Positions by Fund/Department GENERALFUND Department 2020-2021 2021-2022 2022-2023 FTEs FTEs FTEs Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time Total Executive 5 0.00 5.00 4 0.00 4.00 5 0.00 5.00 Finance 13 5.80 18.80 15 4.35 19.35 16 2.90 18.90 Information&General Services 11 0.00 11.00 13 0.00 13.00 13 0.00 13.00 Public Works 12 0.00 12.00 13 0.00 13.00 17 0.00 17.00 Community Development 6 0.00 6.00 10 0.00 10.00 11 0.00 11.00 Police-Sworn 55 0.00 55.00 55 0.00 55.00 55 0.00 55.00 Police-Other 15 1.68 16.68 17 1.68 18.68 9 0.00 9.00 Parks&Recreation 11 10.52 21.52 13 10.03 23.03 1J:ft 24.33 TOTAL 128 18.00 146.00 140 16.06 156.06 14153.23 ENTERPRISE FUNDS Fund 2020-2021 2021-2022 2022-2023 FTEs FTEs FTEs Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time Total Water and Sewer 20 0.00 20.00 22 0.00 22.00 21 0.73 21.73 Stormwater 6 0.00 6.00 6 0.00 6.00 7 0.00 7.00 Development Services 4 4.73 8.73 6 0.00 6.00 7 0.00 7.00 TOTAL 30 4.73 34.73 34 0.00 34.00 35 0.73 35.73 ORGANIZATION-WIDE 2020-2021 2021-2022 2022-2023 FTEs FTEs FTEs Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time Total TOTAL 158 22.73 180.73 16.06 190.06 13.96 188.96 FTEs-Full-time Equivalents 13 35 PERSONNEL by Fund/Department/Division 2020-2021 2021-2022 2022-2023 Full-time Part-time Full-time Part-time Full-time Part-time GENERALFUND Executive Full-time Part-time Full-time Part-time Full-time Part-time 1200 City Manager 2 2 2 1210 City Clerk 3 2 3 Departmental Total 5 0.00 4 0.00 5 0.00 Finance Full-time Part-time Full-time Part-time Full-time Part-time 1300 General 9 9 10 1360 Utility Billing 4 5.80 6 4.35 6 2.90 Departmental Total 13 5.80 15 4.35 16 2.90 Information&General Services Full-time Part-time Full-time Part-time Full-time Part-time 1600 General 5 5 S 1316 Human Resources 2 2 2 1935 Facilities Maintenance 2 4 4 7415 Marketing&Events2 2 2 .Departmein t tal Toal........................................ 11 0.00 13 0.00 13 0.00 Public Works Full-time Part-time Full-time Part-time Full-time Part-time 4100 Administration 1 2 2 4110 Roads and ROW Maint 9 8 12 1940 Fleet Maintenance 2 3 3 Departmental Total 12 0.00 13 0.00 17 0.00 Community Development Full-time Part-time Full-time Part-time Full-time Part-time 1500 Administration 1 1 1 1510 Planning 2 2 3 1520 Urban Beautification 3 7 7 Departmental Total 6 0.00 10 0.00 11 0.00 Police Full-time Part-time Full-time Part-time Full-time Part-time 2100 Office of the Chief-Sworn 55 55 SS 2100 Other Civilian 6 8 9 2140 Support Services-Dispatch 9 1.68 9 1.68 0.00 Departmental Total 70 1.68 72 1.66 64 0.00 Parks&Recreation Full-time Part-time Full-time Part-time Full-time Part-time 7200 Administration 2 2 2 7230 Parks&Grounds 7 8.33 9 7.84 10 8.14 7250 Seniors 2 2.19 2 2.19 2 2.19 Departmental Total 11 10.52 13 10.03 14 1033 Peneral Fund Total I 128 18.00 140 16.06 140 13.23 WATER&SEWER Full-time Part-time Full-time Part-time Full-time Part-time 3600 Operating 20 0.00 22 0.00 21 0.73 STORM WATER Full-time Part-time Full-time Part-time Full-time Part-time 3800 Operating 5 5 4 3810 Engineering 1 1 3 Stormwater Total 6 0.00 6 0.00 7 0.00 DEVELOPMENT SERVICES Full-time Part-time Full-time Part-time Full-time Part-time 2400 Plans and Inspections 4 4.73 6 0.00 7 0.00 j jJ11111111111jr- Full-time Part-time Full-time Part-time Full-time Part-time 158 22.73 174 16.06 175 13.96 ORGANIZATION-WIDE TOTALS 180.73 190.06 188.96 14 36 DEBT MANAGEMENT Debt Management As set forth in the City's Comprehensive Improvement Element (CIE), the City shall manage debt issuance and obligations according to sound public fiscal management principles so that the City is able to provide needed capital improvements and maintain services at adopted levels of service (LOS). Criteria for Managing Debt Financing: The City does not have legal debt limits or utilize specific debt ratios such as the limitation on the use of revenue bonds as a percent of total debt; the maximum ratio of total debt service to total revenue; and the maxiumum ratio of outstanding capital indebtedness to property tax base. Instead each debt issuance is evaluated on an individual basis giving consideration to the following factors: ➢ type of facility being financed ➢ significance of the annual debt service requirement favorable impact to the City economic capacity of the City overlapping debt which depends on the same economic base ➢ projected City growth rate Criteria in Selecting Revenues to Finance Public Facilities: To the extent possible, the following revenues are to be utilized to finance public facilities (listed in order of priority and preference): ➢ Grants or other intergovernmental sources ➢ Developer contributions (inclusive of dedicated land and impact fees) ➢ User revenues (inclusive of charges for services, local option gas tax, etc.) ➢ Sales tax (local option infrastructure surtax) Debt Financing ➢ Ad valorem property taxes Since some sources are not appropriate or legally available for a particular purpose, the above list is advisory in nature and not to be construed as obligatory. Organization-Wide Debt Service Requirements Exclusive of internal loan to the Tuscawilla III Assessment District(detail on successive pages) Year Ending 9/30 Principal Interest Total 2023 $1,400,811 $2,416,218 $3,817,028 2024 $1,356,495 $2,458,122 $3,814,617 2025 $1,319,802 $2,497,077 $3,816,879 2026 $1,282,286 $2,532,448 $3,814,734 2027 $1,246,378 $2,564,004 $3,810,382 2028 $1,214,410 $2,592,481 $3,806,892 2029 $1,189,730 $2,619,356 $3,809,086 2030 $1,161,532 $1,089,031 $2,250,563 2031 $1,867,990 $17,819 $1,885,809 2032 $413,190 $13,792 $426,982 2033 $363,406 $10,188 $373,593 2034 $311,637 $7,952 $319,589 2035 $313,885 $5,700 $319,585 2036 $316,149 $3,432 $319,581 2037 $318,430 $1,147 $319,577 $14,076,129 $18,828,767 $32,904,897 15 37 DEBT SERVICE REQUIREMENTS Governmental Funds Fund#202 Fund#261 Fund#162 Improvement Refunding TLBD Special Assessment Tuscawilla III Assessment Revenue Bonds' Revenue Note2 District Series 1999 Series 2011 INTERNAL Loan US Bank BB&T$1,765,000 $63,720 Year Ending Principal Interest Principal Interest Principal Interest 9/30 2023 $350,893 $924,107 $102,332 $28,680 $3,107 $1,103 2024 $331,130 $943,870 $105,408 $25,304 $3,194 $1,016 2025 $312,413 $962,587 $113,321 $21,750 $3,284 $926 2026 $295,456 $979,544 $115,967 $18,024 $3,376 $835 2027 $278,677 $996,323 $118,435 $14,215 $3,470 $740 2028 $263,517 $1,011,483 $120,722 $10,329 $3,568 $643 2029 $248,485 $1,026,515 $127,821 $6,290 $3,668 $543 2030 $234,957 $1,040,043 $129,625 $2,106 $3,770 $440 2031 $3,876 $335 2032 $3,984 $226 2033 $4,096 $115 $2,315,528 $7,884,473 $933,631 $126,698 $39,393 $6,922 The Public Communication Services Tax and Electric Franchise Fees are pledged revenues to pay debt service expenses related to the Improvement Refunding Revenue Debt. Anticipated revenues from these funds are expected to be more than sufficient for the debt service requirements. 2The TLBD Debt Service Fund has an established legal maximum of $43/ERU. The Tuscawilla Improvement Area Special Assessment Bond, Series 2001 was refinanced with a commercial bank note for the remaining term at 3.25% (fixed rate).The Present Value effect of this refinancing is a savings of$276,584. 3 This note is a 20-year variable rate note (indexed to the 5-year US Treasury) funded by the City of Winter Springs and is secured by a special assessment district levy (Tuscawilla III Capital) for the purpose of a capital wall project in a residential vicinity within the Tuscawilla community. 16 38 DEBT SERVICE REQUIREMENTS Water and Sewer Fund Fund 4410 Fund#410 Fund#410 Water&Sewer Capital Water&Sewer z Appreciation/Serial Bonds Refunding Revenue' State Revolving Loan Series 2000 Series 2020 Series 2017 US Bank Truist Bank $5,982,108 TOTAL WATER&SEWER' Year Ending Principal Interest Principal Interest Principal Interest Principal Interest TOTAL 9/30 2023 $522,637 $1,384,069 $137,000 $47,678 $287,949 $31,683 $947,586 $1,463,431 $2,411,016 2024 $490,931 $1,414,050 $139,000 $45,296 $290,026 $29,602 $919,957 $1,488,949 $2,408,905 2025 $460,950 $1,442,363 $141,000 $42,871 $292,118 $27,507 $894,068 $1,512,741 $2,406,808 2026 $432,638 $1,469,081 $144,000 $40,403 $294,225 $25,396 $870,863 $1,534,880 $2,405,742 2027 $405,919 $1,492,313 $147,000 $37,883 $296,347 $23,270 $849,266 $1,553,466 $2,402,732 2028 $382,687 $1,514,212 $149,000 $35,329 $298,484 $21,128 $830,171 $1,570,669 $2,400,841 2029 $360,787 $1,534,856 $152,000 $32,723 $300,637 $18,972 $813,424 $1,586,551 $2,399,975 2030 $340,144 $154,000 $30,083 $302,806 $16,799 $796,950 $46,882 $843,832 2031 $1,563,000 $3,208 $304,990 $14,611 $1,867,990 $17,819 $1,885,809 2032 $106,000 $1,385 $307,190 $12,407 $413,190 $13,792 $426,982 2033 $54,000 $309,406 $10,188 $363,406 $10,188 $373,593 2034 $311,637 $7,952 $311,637 $7,952 $319,589 2035 $313,885 $5,700 $313,885 $5,700 $319,585 2036 $316,149 $3,432 $316,149 $3,432 $319,581 2037 $318,430 $1,147 $318,430 $1,147 $319,577 $3,396,693 $10,250,944 $2,886,000 $316,858 $4,544,277 $249,794 $10,826,970 $10,817,597 $21,644,567 1 In fiscal year 2021,current refunding opportunities arose to refinance Water&Sewer State Revolving Loan Series 2013 and Water&Sewer Refunding Revenue Note Series 2018(Synovus Bank)with an interest rate of 1.72% maturing October 2032. 2 State Revolving Loan granted by the State of Florida has a 20-year amortization and a 0.72%fixed rate of interest over the entire life of the loan.This financing will be used for water quality improvements. 3 A look at the total debt service requirements for this utility reflects a relatively level annual requirement. The debt service requirements are based on the accrual method which means the interest expense is matched to the period in which it is incurred not necessarily when paid. This fund has projected fund equity in excess of the target fund equity of 25%of operating expenses. Rate increases, necessary to meet debt coverage requirements, were instituted by the Commission as follows: October 2009-7%, October 2010-7%, October 2011-7%, thereafter, a CPI rate escalator. 17 39 TOTAL CAPITAL OUTLAY GENERALFUND Information Services-General Server Infrastructure Replacements-Physical Servers $20,000 Learning Management and Training Soft Skill $30,000 Customer Service Cisco Webex Call Center-Replacing Current Cisco System $40,000 Acronis-Cloud Off-Site Server Backups $8,000 Computer Replacement-City Hall $30,000 Computer Replacement-Police $30,000 $158,000 City Hall Transit Van $25,000 $25,000 Public Works-Administration Small Dump Truck -F450 $80,000 $80,000 Police Department 2022 Ford F-150 Crew Cab 2WD Replacement for V22 $32,962 Light Kit(2) $2,200 2022 Ford Ranger Super Cab (2) $51,450 Graphic Design $3,400 Light Kit(2) $3,000 Refabric Cubicle Partitions CIB/Enf.(1997) $13,700 2022 Ford Transit T-150 Cargo Van-Crime Scene Vehicle $27,049 Administration Light Package Storage/Work Place $5,425 $139,186 Parks&Recreation AC Unit Replacement $30,000 F150 Reg Cab for Park Rangers(2) $50,000 Graphic Design $3,000 Laser Level for Baseball Fields $25,000 Civic Center Roof $75,000 F250 $34,000 $217,000 Total General Fund-Capital Outlay $6199186 See the following pages for the remaining capital corning from the other governmental and enterprise funds 18 40 TOTAL CAPITAL OUTLAY OTHER GOVERNMENTAL FUNDS Transportation Improvement Fund#120 CIP-Winding Hollow Turn Lane $632,500 $632,500 Road Improvement Fund#121 (3rd pen) CIP-Bridge Location TBD-Based on Priority Testing $1,104,000 Road Resurfacing $1,150,000 CIP-Resurfacing(2nd Gen) $62,500 CIP-Bridge Engineering and Design $150,000 Asphalt Hot Box $20,000 Police Marked Units(5) $251,880 $2,738,380 Arbor-Fund#140 Watering Truck $45,000 $45,000 Transportation Impact Fee Fund#150 Integra 360 Light $379,000 Michael Blake Light $575,000 $954,000 Parks Impact Fee Fund#153 Cl P-Torcaso Pavilion 2 $100,000 $100,000 AR PA#180 Design Cost for East and West Waste Water Treatment Plants $1,350,000 $1,350,000 1999 Construction Fund#301 Cl P-CWP/Lake Jessup Pickleball Courts and Parking Lot Phase 1 $785,900 $785,900 Revolving Rehab#302 CIP-CWP/Lake Jessup Pickleball Parking Lot Phase 2,Restrooms,and Stormwater $1,172,600 $1,172,600 Perk Up Parks Capital Project Fund#303 City Wide Event Signage $150,000 CWP Marquee $100,000 CWP Passive Area Shed $44,500 Parks Facility Maint.Building $250,000 Ranchland Restroom $50,000 Sam Smith Parking Lot $20,000 Torcaso Pavilion 2 $100,000 Torcaso Pier-Bridge to Connect Pavilions $50,000 City Recognition-Walk at CWP $100,000 $864,500 Excellence in Customer Service Initiative C.P.Fund#305 City Hall Improvements $15,000 $15,000 Total Other Governmental Funds-Capital Outlay $8,657,880 19 41 TOTAL CAPITAL OUTLAY ENTERPRISE FUNDS Water&Sewer-Operating#410 Construction in Progress CIP-Emergency Plant Upgrades(Other Continued) $348,000 CIP-WTP 3 Standby Power Connections $450,000 CIP-WWTP Replacement Engineering&Design $1,350,000 CIP-Lake Jessup Reclaimed Water Augmentation Plant Feasibility $70,000 CIP-Lift Station Rehabilitation $82,000 CIP-WTPI PH2 Improvements Eng&Design $150,000 CIP-WTPI Ion Exchange Caustic Squeeze $20,000 CIP-WTP-2&3 Well Evals and Improvements $150,000 CIP-WTP2 Ground Storage Tank Rehab and Optimization $50,000 CIP-Eastern Wastewater/Gravity System Capacity Study $100,000 CIP-West Plant HSPS Controls $80,000 CIP-Winter Springs Village Reclaimed Water Connection $150,000 Other Capital Neptune Software Upgrade for Meter Services $18,000 Water Line Replacement $128,000 Sewer Line Replacement $500,000 Sewer Pipe Lining $250,000 Reclaimed Water Main Replacement $75,000 Reclaim Meters-Rapid Infiltration Basins(RIBs) $60,000 Master WTP Meters-3 $75,000 Lift Station Redundancy $321,000 Hydrant Replacement $30,000 Lift Station Radio Upgrades $50,000 CIP-Lift Station#7 West Engineering $250,000 CIP-Lift Station#1 East Engineering $250,000 Pump Replacement-Waste Water $50,000 Pump Replacement-Water $30,000 Security Doors at PW Admin. $8,000 Security Cameras Water Plants $100,000 $5,195,000 Stormwater-Operating#411 CIP-Shore&Alton Culvert Upsizing -Engineering $87,400 CIP-Shore&Alton Bank Stabilization-Engineering $57,500 CIP-Pipe Relining $57,500 CIP-Curb Inlet Rehabilitation $40,000 $242,400 Water&Sewer Service Availability#412 FY23-CIP-434 Reclaimed Expansion (Formerly Known as-Tuscawilla Crossing) $2,800,000 $2,800,000 Development Services-Plans&Inspections#420 CIP-Lobby Kiosks $200,000 Security Camera/Video $100,000 Furniture Building Department $8,000 F150 I nspectors $28,000 CIP-Counter Enhancement/Training Room $200,000 $536,000 Total Enterprise Funds-Capital Outlay $8,773,400 TOTAL CAPITAL OUTLAY- ALL FUNDS $18,050,466 20 42 THIS PAGE INTENTIONALLY LEFT BLANK +r � Incorporated 1959 43 FINANCIAL ORGANIZATIONAL STRUCTURE 44 1 THIS PAGE INTENTIONALLY LEFT BLANK +r � Incorporated 1959 45 MAYOR Kevin McCann COMMISSIONERS Seat One— Matt Benton Seat Two — Kevin Cannon (Deputy Mayor) Seat Three — Ted Johnson Seat Four— TiAnna Hale Seat Five — Rob Elliott CITY MANAGER Shawn Boyle CITY ATTORNEY Anthony A. Garganese CITY CLERK Christian Gowan DEPARTMENT DIRECTORS Deputy City Manager Casey Howard Community Development Travis Kendall Finance Director Scott Borror Parks & Recreation Director Leonard Hartman Police Chief Matthew Tracht Public Works/Utilities Director Jason Norberg 21 46 y 411 / m E ou u § } Z- o y m \ -Ln, E / / \ uEQ) -0 > ■ / / / / / .\ % \ \ \ / 99 $ \ � > '> o ./ f E n \ .g � \ \ C)- 5 2 2 E 03m n 0 2 2 3 2 ± \ \ Ln yJ ' 41 I Ln \ u { E ƒ X \ \ / u \ 9 2 2 Ln .� ° \ ƒ \ 2 f .- E I n / j \ / c ± � mm . . Lu ƒ Ln E y m 2 ° R E E m \ I a m \ \ \ / > >1 17L � \u / y \ / / / I / / \ / / / 41 m ■ \ _ u E \ ( E 4-1 m / m g / \ / E ) \ ƒ ± 2 e nLn ƒ u me0 / 2 / / > § f 3 \ \ E Q) ° � U \ § D / I � 2 m\ ) JE2 E 2 n m o n u2 � 2 - - - - 47 Financial Structure Introduction The operations for the City of Winter Springs are accounted for on the basis of fund and account groups. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Winter Springs, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Fund Categories All of the funds of the City of Winter Springs can be divided into three categories governmental funds, proprietary funds, and fiduciary funds. The City has four types of governmental funds: General, Special Revenue, Debt Service, and Capital Project. The City of Winter Springs maintains one type of proprietary fund called enterprise funds. Such funds have been established for the Water and Sewer Utility, Development Services, and the Storm Water Utility Fund. The Pension Trust Fund is the only fiduciary fund and is not reflected in this budget because the resources of such funds are held for the benefit of parties outside the government. It is the only fund that is included in the Comprehensive Annual Financial Report that is not included in this budget. For the audited financial statements, the accrual basis is the accounting basis that is utilized for the Enterprise and Pension Funds; the modified accrual basis is utilized for all others. Under the accrual basis, revenue and expense items are recognized as they are earned or incurred, even though they may not have been received or actually paid in cash. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received). Under the modified accrual basis, revenue is recognized when it is earned and becomes available and measurable. Expenditures are typically recognized in the period in which the liability is incurred. The basis of accounting for budgetary purposes is the largely the same as that used under the GAAP basis of accounting. The following highlights some of the significant relationships: • Under the GAAP basis of accounting in the Enterprise (or proprietary) Funds, the receipt of long-term debt proceeds, capital outlays and debt service principal payments are not reported in operations, but allocations for depreciation and amortization expense are recorded. The opposite is true under the budgetary basis of accounting. • Encumbered amounts are commonly treated as expenditures under the budgetary basis of accounting while encumbrances are not classified as expenditures under the GAAP basis of accounting. Conservatively, the beginning budgeted fund balance assumes full depletion of the prior fiscal year's budget. • Budgetary revenues and expenditures may include items classified as "other financing sources" and "other financing uses" under the GAAP basis of accounting. • Under the GAAP basis of accounting, changes in the fair value of investments generally are treated as adjustments to revenue, which is not the case under the budgetary basis of accounting. • The fund structure used in GAAP financial statements does not differ from the fund structure used for budgetary purposes; however, there are interfund transfers which are budgeted in the general fund for transfer to an appropriate debt service fund for the annual debt service payments and related accounting. Also designated is each fund's classification as a major or non-major fund as determined by the calculation used in the fiscal year ending September 30, 2021 Comprehensive Annual Financial Report. A major fund is one whose revenues, expenditures/expenses, assets, or liabilities (excluding 23 48 extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds for the same item. The prescribed accounting basis and fund classification is indicated below for all funds. Governmental: General Fund MAJOR/modified accrual basis This is the chief operating fund of the City of Winter Springs. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Special Revenue Funds (#101) Police Education Fund non-major/modified accrual basis This fund accounts for the costs of educational expenses for police officers. It is funded by a portion of the collections from fines and forfeitures. (#102 and#103) Special Law Enforcement Trust Funds (Local and Federal, respectively) non-major/modified accrual basis These funds were established to receive revenues derived from confiscated property obtained during the enforcement of illegal operations. Proceeds are utilized strictly for law enforcement purposes, exclusive of salaries and vehicles. Such purposes may include drug education programs such as the DARE program. (#120) Transportation Improvement Fund non-major/modified accrual basis Revenues in this fund are derived from Local Option Gasoline Tax distribution. Proceeds are to be used for road, right of way, and drainage maintenance and equipment necessary to build or maintain roads, right of ways, and drainage. (#130) Solid Waste/Recycling Fund MAJOR/modified accrual basis This fund is used to account for fees for solid waste and recycling services performed by contract vendors. Proceeds are used to pay monthly vendor charges for providing solid waste and recycling services. (#140)Arbor Fund non-major/modified accrual basis This fund is used to account for arbor revenues. This revenue source is used to maintain plantings in the city. (#121) Infrastructure Surtax Fund Previously Road Improvement Fund MAJOR/modified accrual basis This fund is used to account for collected one-cent sales tax revenues to be primarily used for infrastructure improvements and other related capital projects & assets. (#150) Transportation Impact Fee Fund non-major/modified accrual basis This fund is used to account for collected impact fees on new development to defray the cost of future road construction as a result of growth. 24 49 (#150) Police Impact Fee Fund non-major/modified accrual basis This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of police service due to future growth. (#152) Fire Impact Fee Fund non-major/modified accrual basis This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to maintain the level of fire service due to future growth. (#153) Park Impact Fee Fund non-major/modified accrual basis This fund is used to account for collected impact fees on new development to defray the cost of capital investment needed to develop and improve the parks due to future growth. (#160) TLBD Maintenance Fund non-major/modified accrual basis This fund is used to account for collected special assessments for maintenance related to the Tuscawilla Lighting and Beautification District phases I and II. In fiscal year 2006-2007, two maintenance programs were streamlined into one assessment district and are accounted for in fund #160. (#161) Oak Forest Maintenance Fund non-major/modified accrual basis This fund is used to account for collected special assessments for maintenance related to the Oak Forest subdivision wall. (#162) Tuscawilla Phase 111 Maintenance/Debt Service Fund non-major/modified accrual basis This fund is used to account for collected special assessments for maintenance and capital/debt service related to the Tuscawilla Units 12/12A wall (Hawk's Reserve). (#180) Sewer Plant Replacement—ARPA SRFL non-major/modified accrual basis This fund is newly created to account for funds received under the American Rescue Plan Act (COVID19) and anticipated funds which will be received from the State Revolving Fund Loan. These funds are dedicated for the replacement of the East &West Sewer Plants. Debt Service Funds (#202) 1999/2011 Debt Service Fund non-major/modified accrual basis This fund is used to account for the accumulation of resources and payment of principal, interest, and related costs for the Series 2011 BB&T note, which partially refunded the 1999 bond issue. (#240) Central Winds General Obligation Debt Service Fund non-major/modified accrual basis This fund is used to account for the accumulation of resources and payment of principal, interest, and related costs for the 2002 limited general obligation bond which was refinanced in May 2012 with a private placement note payable. During FY2017, the note was internally financed at 0%. A voted debt levy was authorized by referendum to finance the annual debt service. This debt was extinguished in FY2020. 25 50 (#261) TLBD Debt Service Fund (Phase 1) non major/modified accrual basis This fund is used to account for the accumulation of resources and payment of principal, interest and related costs for the 2001 special assessment bond issue which was refinanced in October 2011 with a private placement note payable. Capital Project Funds (#301) 1999 Construction Capital Projects Fund non-major/modified accrual basis This fund was established for the acquisition and construction of City-owned capital improvements. (#302) Revolving Rehabilitation Capital Projects Fund non-major/modified accrual basis This fund was established to fund capital improvements and economic development within the City. (#303 Public Facilities Capital Project Fund non-major/modified accrual basis This fund was established to fund capital projects within the City. (#305) Excellence in Customer Service Initiative Fund This fund was established to account for capital improvements for the purpose of increasing the level of customer service (i.e. redesign of the City Hall lobby/bathrooms, acquisition of software, new phone system). Proprietary: Enterprise Funds (#410/412) Water and Sewer Utility Fund MAJOR/accrual basis This fund was established to account for the provision of water and sewer services to the residents of the City. (#420) Development Services Fund MAJOR/accrual basis This fund was established in 2003 to account for plans, inspections and related customer service as an enterprise fund. (#411) Stormwater Utility Fund MAJOR/accrual basis This fund was established to account for the stormwater management department as an enterprise fund. Fiduciary: Pension Plan Trust Fund accrual basis This fund accounts for the contributions to the defined benefit plan. Because this fund accounts for the resources held for the benefit of parties outside the government it is not included in the budget document. 26 51 Budget Process Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all funds. The budget is established through the following procedures: • In January and February, City Manager and department directors begin preliminary budget discussions regarding the next fiscal year. Directors submit budget requests in early spring followed by the refinement and balancing process. • About March of each year, the budget calendar is presented by staff and approved by the City Commission. • In the spring, budget meetings/workshops are convened which may include department directors, support staff, City Manager, Finance Director, Budget Analyst, Mayor and Commission. From those in-house workshops, the Proposed Budget is prepared. • On or before July 1 of each year, the City Manager submits the Proposed Budget to the Commission for consideration. • The City Commission may hold informal budget workshops which the public is invited to attend. • In July, the City Commission establishes the tentative millage rate (DR 420) which becomes the millage `ceiling' when approving the annual millage rate and budget in September. • Also established at this meeting is the rolled-back rate calculation, the date, time and place of the first Public Hearing. Once these determinations have been made, they are communicated via the DR 420 to the Seminole County Property Appraiser, the Seminole County Tax Collector and the Department of Revenue. This information is advertised via the Notice of Proposed Property Taxes (TRIM Notice) which is mailed to property owners by the Seminole County Property Appraiser. • Two to five days prior to the second public hearing the notice of the final budget hearing and budget summary is advertised in a newspaper of general paid circulation. • On or before September 30 of each year, after two public hearings, the Commission adopts the budget and establishes the ad valorem tax millage rates. • The TRIM (Truth in Millage) compliance package is submitted to the Department of Revenue. • The budget may be formally amended by the Commission at any time. Proposed: Date Function February 28 Commission establishes FY 2023 Budget Calendar by July 1 Transmission of Proposed 2023 Budget - budget placed on Shared Drive and Website Tentative: by July 1 Property Appraiser submits DR 420 Certification July 7 Budget Workshop July 11 Commission establishes millage cap (DR 420 tentative millage rates via Resolution August 4 Deadline to Notice Property Appraiser of Proposed Millage Rate/ Rolled-back Rate / Date, Time, Place of Public Hearing Must be sent within 35 days of certification of value August 24 Deadline for Property Appraiser to send TRIM Notice to property owners (Considered notification of Tentative public hearing; must be mailed by PA within 55 days of value certification September 12 Public Hearing (Tentative) Tentative millage and budget hearing (Resolutions) (Must be within 80 days of value certification but not earlier than 65 days after certification 27 52 Final/Adopted: September 22 Advertisement publication date (Thursday for Seminole Extra)for final millage and budget hearing (Final public hearing must be within 15 days of the tentative public hearing) September 26 Public Hearing (Final) Final millage and budget hearing - Adoption of final millage and budget must be done separately and in that order (Resolutions) (Hearing must be held not less than 2 days or more than 5 days after advertisement is published by September 29 Resolution to Property Appraiser Resolution to Tax Collector Must be submitted within 3 days after adoption of final millage rate by October 26 Mail TRIM package to Property Tax Administration Program Department of Revenue (Must be submitted within 30 days of final adoption) Budget Transfers and Amendments • The legal level of budgetary control is at the department level. • The City Manager is authorized to transfer budgeted amounts between accounts within a department. • The budget is an annual one, as such, unexpended appropriations for these funds lapse at the end of each fiscal year. • Increases to the budget are accomplished by resolution duly adopted by the Commission. There may be two amendments to the budget each fiscal year — one at approximately mid- year and one within 60 days of the fiscal year-end. 28 53 Budget, Financial and Management Guidelines General • An independent audit will be performed annually. The City administration will promptly evaluate the audit management letter, if necessary, to determine the necessary steps to implement the audit recommendations. • Financial records to be maintained on a basis consistent with Generally Accepted Accounting Principles (GAAP) and the Government Accounting Standards Board (GASB). • The City will strive to maintain a fund balance in the General and Enterprise funds of 25% of personnel services and operating expenditures which serves to protect against the need to reduce service levels or raise taxes and fees due to temporary revenue shortages or unpredicted spikes in expenditures. • The City will strive to ensure that personal and operating costs do not exceed recurring revenues; that is, recurring expenses will not be funded with non-recurring revenue. • It will be the City's highest priority to maintain current service levels for all essential services. • Employee positions are fully-funded. Revenues • The City will strive to maintain diversified revenues for the sake of fiscal stability and to most equitably distribute the cost of services. • The City will set user-fees for all enterprise funds at a level that fully supports the total direct and indirect cost of the activity. • A portion of the cost of non-enterprise activities may be considered for subsidy provided that such action is consistent with the interests of the City and with all legal requirements. • The use of one-time revenues to fund ongoing expenditures is discouraged. Budget • The City will abide by a structured budget process and comply with the "Truth in Millage" state statute which regulates taxing authorities in the millage assessment process. • Budgets are considered balanced when revenues and appropriations from the fund (if applicable) equal expenditures and appropriations to the fund (if applicable). • Recurring revenues should be sufficient to pay for all recurring costs thus avoiding the use of non-recurring revenues and fund balances to fund such costs. • The City will adhere to all Federal, State, and local legal requirements related to the operating budget. • The City will maintain a budgetary control system to ensure budgetary compliance. • All fund balances will be presented in the annual budget. • The City will attempt to avoid layoffs of permanent employees in order to balance the budget. Purchasing • The City Manager is authorized to purchase or to contract for all commodities and services which do not exceed $50,000; those in excess require written bids and Commission approval. • Regarding bids, the City of Winter Springs intends to secure a source of supply for item(s) or services(s) at the lowest price; early and satisfactory manufacture; and prompt, convenient service and shipment. • Purchase orders over$5,000 must be approved by the City Manager. • Purchases for commodities and services over$2,500 require three quotes unless a sole source vendor is being utilized or the City is piggy-backing off another governmental agency. 29 54 Investments and Cash Management • Cash and investments are managed in accordance with the City's investment policy while providing for liquidity to meet the City's needs in a sound and prudent manner. • The City administers a cash management and investment program that seeks to maximize, in order of priority, the preservation of funds, liquidity, and interest earnings over its cash and investments. • The City will collect revenues aggressively, including past due bills and may utilize a collection agency to accomplish this. Capital Assets • The budget will provide for the maintenance and replacement of capital assets which are defined as expenditures which equal or exceed $5,000. • The City has a five-year Capital Improvements Plan (CIP) which it annually reviews and updates to ensure that all necessary capital improvements are being incorporated. This plan is a multi-year prioritized schedule of capital improvements (which equal or exceed $50,000) by intended year of purchase or commencement, the amount of expenditure per year, method of financing and annual operating costs. • Assets will be inventoried annually. Assessment as to condition of all major capital assets is routinely evaluated by the respective departments. • When appropriate, surplus and obsolete property will be disposed of at public auction. Debt Management • There are no limitations placed on the amount of debt the City may issue either by the City's charter, code of ordinances or State statute. • The City shall manage debt issuance and obligations according to sound public fiscal management principles so that the City is able to provide needed capital improvements and maintain services at adopted levels of service (LOS). • Debt service - managed to ensure that timely payment of principal and interest is made and that bond covenants are met so as to maximize efficiency and credit-worthiness. • General obligation debt will not be used to finance the activities of enterprise funds. • The term of any bonds shall not exceed the useful life of the expenditures being financed. • Long-term debt will not be utilized to fund current and ongoing operations. • For long-term debt, the City uses financial advisors independent of bond brokerage houses and independent bond counsel to determine the best method of financing. • The City will maintain an adequate debt service fund for each bond issue. • See Debt Service section for a list of criteria for managing debt financing and selecting revenues to finance public facilities. Pension Plan • Employees become plan participants on the first day of the month immediately following the date six months after the first day of employment. • The City will provide sufficient funding to the pension plan in order to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. Accordingly, the City will retain independent actuarial advisors to provide the minimum annual required contribution for both employer and employee. • The Defined Benefit (DB) plan is closed to employees hired after October 1, 2011. DB Employees have a required contribution rate of 5%. For employees hired after October 1, 2011, the City contributes 5% to a Defined Contribution (DC) plan with eligibility for an additional 2.5% matching contribution. 30 55 GENERAL FUND 56 THIS PAGE INTENTIONALLY LEFT BLANK +r � Incorporated 1959 57 GENERAL FUND FISCAL POLICY TESTS OPERATING COVERAGE Recurring Revenue $20,107,054 Total Expenditures $20,053,688 LESS : Capital Expenditures ($619,186) Discretionary- UCF Incubator ($50,000) Recurring Personnel and Operating Expenditures $19,384,502 ($19,384,502) Effect on Fund Balance - OPERATING COVERAGE $722,552 CAPITAL COVERAGE Non-recurring Revenue $0 LESS: Capital Expenditures ($619,186) Discretionary- UCF Incubator ($50,000) Effect on Fund Balance - CAPITAL COVERAGE ($669,186) TOTAL EFFECT ON FUND BALANCE $53,366 FUND BALANCE Projected Beginning Fund Balance $9,042,979 Appropriation TO (FROM) Fund Balance $53,366 Projected Ending Fund Balance $9,096,345 Ending Fund Balance Designations: 90-day/25% Operating Reserve $4,846,126 Economic Development/Capital $4,250,220 Projected Total Ending Fund Balance $9,096,345 31 58 GENERAL FUND Sources and Applications by Classification Of Original %of %of Actuals Budget Budget Source FY27 Tota/ FY22 Tota/ FY23 Tota/ Ad Valorem Tax $6,291,085 31.5% $6,635,032 35.4% $7,354,324 36.6% Utility Tax $3,438,305 17.2% $3,277,910 17.5% $3,436,760 17.1% Intergovernment- Half-Cent $2,747,752 13.8% $2,661,360 14.2% $2,614,500 13.0% Franchise Fee $2,396,706 12.0% $2,300,333 12.3% $2,354,007 11.7% Intergovernment- Rev Sharing $1,509,708 7.6% $1,052,480 S.6% $1,280,024 6.4% Communication Service Tax $1,254,681 6.3% $1,100,000 S.9% $1,205,000 6.0% Interfund Transfers In $533,856 2.7% $709,337 3.8% $779,858 3.9% Charges for Service $387,697 1.9% $480,145 2.6% $558,689 2.8% Miscellaneous $552,634 2.8% $270,800 1.4% $276,527 1.4% Other Taxes $125,892 0.6% $102,000 0.5% $102,000 0.5% Fines&Forfeitures $109,414 0.5% $95,000 0.5% $100,500 0.5% Intergovernment-Other $586,918 2.9% $27,600 0.1% $26,700 0.1% Licenses&Permits $21,185 0.1% $24,480 0.1% $18,165 0.1% Approp from Fund $0 0.0% $0 0.0% $0 0.0% Total Sources $19,955,833 100.0% $18,736,477 100.0% $20,107,054 100.0% Of Original %of %of Actuals Budget Budget Application FY27 Tota/ FY22 Tota/ FYI Tota/ Personnel $11,351,316 56.9% $11,839,596 63.2% $12,690,624 63.1% Other Operating $1,017,766 5.1% $1,673,340 8.9% $1,512,877 7.5% Repair and Maintenance $1,040,642 5.2% $1,322,986 7.1% $1,558,068 7.7% Interfund Transfers Out $4,280,000 21.4% $1,280,001 6.8% $1,275,001 6.3% Utilities $764,670 3.8% $827,281 4.4% $846,243 4.2% Services $177,666 0.9% $562,731 3.0% $704,095 3.5% Capital Outlay $661,310 3.3% $484,000 2.6% $619,186 3.1% Supplies $305,676 1.5% $506,474 2.7% $530,251 2.6% Fuel $193,062 1.0% $183,868 1.0% $261,143 1.3% Ora nts&Aids $56,140 0.3% $56,200 0.3% $56,200 0.3% Approp to Fund $107,585 0.5% $0 0.0% $53,366 0.3% Tota/Applications $19,955,833 100.0% $18,736,477 100.0% $20,107,054 100.0% 32 59 GENERAL FUND Sources and Applications by Function Of Original %of Actuals Total Budget Total Budget %of Total Source FY27 FY22 FY23 Non-Department $18,662,487 93.5% $17,517,765 93.5% $18,756,500 93.3% Finance $719,543 3.6% $709,337 3.8% $764,058 3.8% Parks& Recreation $208,948 1.0% $235,554 1.3% $266,750 1.3% Police $142,346 0.7% $114,440 0.6% $107,701 0.5% Public Works $66,000 0.3% $66,001 0.4% $135,380 0.7% Executive& Legislative $50 0.0% $48,500 0.3% $48,500 0.2% Community Development $93,092 0.5% $44,880 0.2% $28,165 0.1% Information &General Services $63,367 0.3% $0 0.0% $0 0.0% Approp from Fund $0 0.0% $0 0.0% $0 0.0% Total Sources $19,955,833 100.0% $18,736,477 100.0% $20,107,054 100.0% %of Original %of Actuals Total Budget Total Budget %of Total Application FY27 FY22 FY23 Police $6,817,962 34.2% $7,233,800 38.6% $7,703,799 38.3% Information &General Services $2,467,596 12.4% $2,670,372 14.3% $2,716,734 13.5% Parks& Recreation $2,502,784 12.5% $2,389,039 12.8% $2,842,517 14.1% Community Development $1,831,573 9.2% $1,935,279 10.3%1 $2,132,447 10.6% Finance $1,149,503 5.8% $1,357,689 7.2% $1,513,153 7.5% Public Works $1,758,960 8.8% $1,113,182 5.9% $1,232,921 6.1% General Government $2,458,765 12.3% $1,260,617 6.7% $1,222,040 6.1% Executive& Legislative $582,411 2.9% $612,491 3.3% $690,077 3.4% Fire $278,694 1.4% $164,008 0.9% $0 0.0% Approp to Fund $107,585 0.5% $0 0.0% $53,366 0.3% TotalApplications $19,955,833 100.0% $18,736,477 100.0% $20,107,054 100.0% 33 60 GENERAL FUND - SOURCES Revenues&Transfers- Non-Departmental Original Revised Account FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 Number Description of Expenditure Actual Actual Budget Budget Budget 00 Non-Department 311000 Ad Valorem $5,869,644 $6,291,085 $6,635,032 $6,635,032 $7,354,324 Total Ad Valorem Tax $5,869,644 $6,291,085 $6,635,032 $6,635,032 $7,354,324 314100 Electricity Tax $2,834,079 $2,932,695 $2,815,850 $2,815,850 $2,845,000 314300 Water Utility Tax $443,597 $429,171 $390,660 $390,660 $509,010 314400 Gas Tax $47,189 $48,788 $47,940 $47,940 $58,500 314800 Propane $23,293 $27,651 $23,460 $23,460 $24,250 Total Utility Tax $3,348,158 $3,438,305 $3,277,910 $3,277,910 $3,436,760 315000 Communication Services $1,162,625 $1,254,681 $1,100,000 $1,100,000 $1,205,000 Total Communication Service Tax $1,162,625 $1,254,681 $1,100,000 $1,100,000 $1,205,000 323100 Electricity $2,137,683 $2,167,002 $2,080,000 $2,080,000 $2,130,500 323700 Solid Waste/Commercial $133,018 $132,807 $124,800 $124,800 $126,804 323710 Solid Waste/Residential $50,851 $51,868 $52,693 $52,693 $51,703 323400 Gas $41,833 $45,029 $42,840 $42,840 $45,000 Total Franchise Fee $2,363,385 $2,396,706 $2,300,333 $2,300,333 $2,354,007 331390 Federal Grant-Other Phys.Environ. $2,631 $497,598 $0 $0 $0 335120 Revenue Sharing $1,279,152 $1,509,708 $1,052,480 $1,198,735 $1,280,024 335140 Mobile Home License Tax $9,884 $9,039 $8,160 $8,160 $7,500 335150 Alcoholic Beverage License $11,570 $13,196 $12,240 $12,240 $12,000 335180 Gov't Half Cent Sales Tax $2,475,130 $2,747,752 $2,661,360 $2,661,360 $2,614,500 Total lntergovernment $3,778,367 $4,777,293 $3,734,240 $3,880,495 $3,914,024 339000 Pymtsfr Other Local in Lieu of Taxes $5,000 $5,000 $5,000 $5,000 F $5,000 341300 Ad min Svc Fees $94,437 $96,327 $97,450 $97,450 $98,058 343945 NSF $0 $20 $0 $0 $0 361100/361300 Investment(realized/unrealized) $276,060 $26,821 $80,000 $80,000 $76,250 362000 Misc Rents $461 $300 $0 $0 $0 362100 Cell Tower City Hall $80,444 $83,184 $82,000 $82,000 $86,840 362101 Cell Tower Shore Drive $87,043 $90,763 $83,500 $83,500 $89,960 364100 Auction Proceeds $5,212 $6,881 $5,000 $5,000 $0 366000 Misc Private Donations $0 $6,000 $0 $0 $0 369301 Settlement Insurance Proceeds $20,553 $34,504 $0 $0 $0 369900 Misc Revenue $8,009 $137,225 $0 $0 $0 369910 Motor Fuel Tax Rebate $18,981 $17,317 $15,300 $15,300 $18,477 Total Other $596,200 $504,342 $368,250 $368,250 $374,585 316000 Local Business ($515) $75 $102,000 $102,000 $102,000 Other Taxes ($515) $75 $102,000 $102,000 $102,000 381180 From Sewer Plant Peplcmnt APPA SRFL $0 $0 $0 $0 $15,800 Total Interfund Transfers In $0 $0 $0 $0 $15,800 Total Non-Departmental Sources $17,117,864 $18,662,487 $17,517,765 $17,664,020 $18,756,500 34 61 GENERAL FUND - SOURCES Revenues&Transfers-Departmental Original Revised Account FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 Number Description of Expenditure Actual Actual Budget Budget Budget 12 Executive&Legislative 341300 Admin Svc Fees $1,150 $50 $48,500 $48,500 $48,500 Total Ad Valorem Tax $1,150 $50 $48,500 $48,500 $48,500 13 Finance 316000 Local Business $112,965 $125,817 $0 $0 $0 341302 Admin Svc Fees-Business License $2,347 $1,015 $0 $0 $0 369900 Misc Income-Record Searches,etc $53,019 $58,855 $0 $0 $0 381410 From Water Sewer Utility $546,523 $533,856 $709,337 $709,337 $764,058 Total Utility Tax $714,854 $719,543 $709,337 $709,337 $764,058 15 Community Development 322010 Zoning $15,240 $9,760 $13,260 $13,260 $9,025 322020 Site Plan $7,295 $7,330 $7,140 $7,140 $7,140 322910 Arbor Permits $9,585 $4,095 $4,080 $4,080 $2,000 337300 Grant-Physical Environment $0 $48,974 $0 $0 $0 341301 Admin Svc Fees-County Impact $50,500 $14,158 $20,400 $20,400 $10,000 366000 Misc Private Donations $1,000 $500 $0 $0 $0 369301 Settlement Insurance Proceeds $1,959 $8,275 $0 $0 $0 Total Community Development $85,579 $93,092 $44,880 $44,880 $28,165 16 Information&General Services 347400 Community Events $0 $50 $0 $0 $0 366000 Misc Private Donations $0 $63,317 $0 $88,033 $0 Total Information Services $0 $63,367 $0 $88,033 $0 21 Police 331200 Federal Grant-Public Safety $24,615 $18,111 $7,200 $7,200 $7,200 341300 Admin Svc Fees $438 $408 $0 $0 $0 342102 Law Enforcement-Code $12,124 $721 $12,240 $12,240 $1 351500 Traffic $64,422 $109,414 $95,000 $95,000 $100,500 369900 Misc Revenue $12,129 $13,692 $0 $0 $0 Total Police $113,728 $142,346 $114,440 $114,440 $107,701 41 Public Works 344910 ROW Maintenance $66,000 $66,000 $66,000 $66,000 $99,000 344930 Street Lighting $33,302 $0 $1 $1 $36,380 Total Public Works $99,302 $66,000 $66,001 $66,001 $135,380 72 Parks&Recreation 341300 Admin Svc Fees $15 $465 $0 $0 $0 347201 Civic Center $5,895 $345 $10,000 $10,000 $10,000 347202 Pavillion $19,946 $51,461 $40,000 $40,000 $40,000 347203 Fields $40,006 $22,392 $20,400 $20,400 $20,400 347204 Senior Ctr-Pool $16,434 $6,122 $5,100 $5,100 $10,000 347205 Senior Ctr-Annual $7,294 $6,400 $2,550 $2,550 $20,000 347206 Splashpad $0 $2,819 $200 $200 $200 347208 Summer Camp $0 $37,019 $76,500 $76,500 $83,000 347209 Programs $6,117 $8,181 $3,060 $3,060 $6,500 347210 League $12,150 $1,800 $2,700 $2,700 $3,000 347211 Partnership League $63,052 $71,944 $75,044 $75,044 73,650 347400 Community Events $8,125 $0 $0 $0 $0 366000 Misc Private Donations $21,979 $0 $0 $0 $0 369900 Misc Revenue $5,823 $0 $0 $0 $0 Total Parks&Recreation $206,836 $208,948 $235,554 $235,554 $266,750 Total Dep'tal Sources $1,221,449 $1,293,346 $1,218,712 $1,306,745 $1,350,554 TOTAL GENERAL FUND SOURCES $18,339,313 $19,955,833 $18,736,477 $18,970,765 $20,107,054 35 62 GENERAL FUND-APPLICATIONS Expenditures&Transfers -Department Specific Original Revised FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 DIV# DEPARTMENT/DIVISION Actual Actual Budget Budget Budget Executive PF 1100 Executive-Commission $108,236 $114,693 $120,139 $120,139 $123,073 1200 Executive-City Manager $380,731 $319,759 $321,198 $321,198 $337,143 1210 Executive-City Clerk $222,299 $147,959 $171,154 $171,154 $229,861 $711,266 $582,411 $612,491 $612,491 $690,077 General Government 1400 General Gov't-Legal Services $261,709 $273,861 $265,420 $265,420 $314,020 1900 General Gov't-General $1,841,071 $2,184,904 $995,197 $1,119,532 $908,020 $2,102,780 $2,458,765 $1,260,617 $1,384,952 $1,222,040 Finance 1300 Finance-General $519,289 $611,715 $648,352 $661,507 $749,095 1360 Finance-Utility Billing&Cust Svc $546,524 $537,788 $709,337 $697,337 $764,058 1310 Finance-Human Resources $214,347 $0 $0 $0 $0 1920 Finance-Risk Management $646,285 $0 $0 $0 $0 $1,926,445 $1,149,503 $1,357,689 $1,358,844 $1,513,153 ID Information&General Services 1600 Information&General Services-General $694,031 $893,513 $1,129,364 $1,035,066 $1,106,123 1910 Information&General Services-City Hall $28,114 $29,987 $27,363 $27,363 $18,483 1315 Information&General Services-Human Resources $0 $286,214 $247,031 $244,529 $280,039 1925 Information&General Services-Risk Management $0 $669,881 $666,008 $666,008 $664,594 1935 Information&General Services-Facilities Maintenance $0 $365,074 $387,463 $387,463 $441,301 7415 Information&General Services-Marketing&Events $0 $222,927 $213,143 $301,176 $206,194 $722,145 $2,467,596 $2,670,372 $2,661,605 $2,716,734 Public Works 4100 PublicWorks-Administration $236,431 $103,079 $179,523 $234,523 $135,929 4110 Public Works-Roads and ROW Maint. $522,319 $1,435,554 $663,953 $720,953 $816,904 1930 Public Works-Facilities Maintenance $224,194 ($129) $0 $0 $0 1940 Public Works-Fleet Maintenance $185,017 $220,456 $269,706 $269,706 $280,088 $1,167,961 $1,758,960 $1,113,182 $1,225,182 $1,232,921 Community Development 1500 Community Development-Administration $117,047 $152,377 $154,824 $154,824 $172,853 1510 Community Development-Long Range Planning $69,443 $58,217 $73,418 $73,418 $173,411 1520 Community Development-Urban Beautification $1,366,178 $1,141,554 $1,191,944 $1,191,944 $1,252,128 1530 Community Development-Streetlighting $483,906 $479,425 $515,093 $515,093 $534,055 $2,036,574 $1,831,573 $1,935,279 $1,935,279 $2,132,447 36 63 GENERAL FUND-APPLICATIONS Expenditures&Transfers -Department Specific Original Revised FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 NUMBER DEPARTMENT/DIVISION Actual Actual Budget Budget Budget Police 2100 Police-Office of the Chief $5,587,273 $6,053,513 $6,386,250 $6,295,250 $6,792,952 2110 Police-Criminal Investigations $26,618 $56,815 $85,765 $32,765 $76,959 2120 Police-Community Services $12,706 $21,318 $12,665 $12,665 $15,270 2130 Police-Operations $93,474 $113,735 $215,080 $257,335 $185,529 2135 Police-Special Operations $4,567 $10 $0 $0 $0 2140 Police-Support Services $531,573 $568,110 $523,310 $519,310 $530,622 2150 Police-Code Enforcement $9,498 $4,461 $10,730 $10,730 $102,467 $6,265,709 $6,817,962 $7,233,800 $7,128,055 $7,703,799 Fire 2200 Fire-Operations $295,812 $278,694 $164,008 $164,008 $0 $295,812 $278,694 $164,008 $164,008 $0 P&R-Operations 01 7200 P&R-Administration $214,160 $247,724 $376,746 $376,746 $180,888 7210 P&R-Athletics $2,879 $2,811 $0 $0 $0 7220 P&R-Athletics-Partnerships $6,086 $11,857 $4,200 $4,200 $3,804 7230 P&R-Parks&Grounds $2,134,823 $1,907,085 $1,575,848 $1,646,406 $2,086,387 7240 P&R-Programs $173,957 $34,320 $109,726 $109,726 $189,928 7250 P&R-Seniors $305,505 $298,987 $322,519 $363,271 $381,510 7400 P&R-Community Events $35,928 $0 $0 $0 $0 $2,873,338 $2,502,784 $2,389,039 $2,500,349 $2,842,517 TOTAL GENERAL FUND APPLICATIONS $18,102,030 $19,848,248 $18,736,477 $18,970,765 $20,053,688 FUND BALANCE-October 1 $8,698,111 $8,935,394 $8,824,620 $9,042,979 $9,042,979 Appropriation TO(FROM)Fund Balance $237,283 $107,585 $0 $0 $53,366 FUND BALANCE-September 30 $8,93S,394 $9,042,979 $8,824,620 $9,042,979 $9,096,345 37 64 GENERAL FUND - EXECUTIVE & LEGISLATIVE OVERVIEW All Divisions Original Revised FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 EXPENDITURES Actual Actual Budget Budget Budget ■ Personnel Services $674,421 $525,912 $537,974 $537,974 $606,655 Operating Expenses $36,845 $56,499 $74,517 $74,517 $83,422 Transfers $0 $0 $0 $0 $0 Capital Outlay $0 $0 $0 $0 $0 TOTAL EXPENDITURES $711,266 $582,411 $612,491 $612,491 $690,077 City Manager-1200 City Manager 1 1 1 1 ..................................................................................................... Administrative Assistant 1 1 1 1 Total 2 2 2 2 City Clerk-1210 City Clerk 1 1 1 1 ........ .......................................................................................... CityClerk Assistant 2 2 1 2 Total 3 3 2 3 FE TOTAL FULL-TIME PERSONNEL 5 5 4 5 Commission- Non-employee-1100 Commissioners 5 5 5 5 ..Mayor.................................................................................... 1 1 1 1 TOTAL 6 6 6 6 TOTAL NON-EMPLOYEE 6 6 6 6 38 65 GENERAL FUND - EXECUTIVE & LEGISLATIVE SUMMARY All Divisions Original Revised Account FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 Number Description of Expenditure Actual Actual Budget Budget Budget 510100 Base Wages/Salaries $397,987 $313,375 $317,286 $317,286 $358,003 510110 Base Wage-Mayor/Commission $75,330 $75,110 $74,400 $74,400 $74,400 510140 Overtime $2,739 $5,043 $4,554 $4,554 $2,700 510900 Reimbursements $0 ($25) $0 $0 $0 520200 FICA $34,655 $27,992 $28,467 $28,467 $30,404 520220 Pension DB $94,483 $55,278 $59,145 $59,145 $61,514 520225 Pension DC $7,694 $2,374 $7,926 $7,926 $11,545 520230 Health Insurance $61,034 $46,383 $45,462 $45,462 $67,227 520240 Workers'Comp $499 $382 $734 $734 $862 Total Payroll $674,421 $525,912 $537,974 $537,974 $606,655 530310 Professional $1,000 $4,814 $11,100 $11,100 $11,100 530314 Consulting $0 $0 $0 $525 $0 530315 Pre/Post Employment $0 $62 $0 $0 $63 530341 Other Svcs-Contract/Admin $925 $487 $3,200 $3,200 $3,042 530411 Communication -Phone $5,240 $5,470 $7,800 $7,800 $7,800 550510 Office $473 $836 $940 $940 $825 550520 Operating $1,638 $2,363 $1,810 $1,810 $1,710 550525 Operating -Small Tools $1,084 $350 $100 $100 $100 555400 Travel &Per Diem $3,139 $3,551 $13,038 $8,613 $12,138 555420 Postage/Freight $343 $539 $628 $628 $594 555470 Printing/Binding $71 $1,063 $1,250 $1,250 $1,550 555480 Promotional/Advertising $3,458 $9,854 $8,520 $14,620 $17,350 555540 Dues/Reg/Pub $12,057 $19,767 $15,631 $15,631 $15,900 555550 Training $1,277 $1,203 $2,800 $2,100 $3,550 555551 Educational Incentive $0 $0 $1,500 $0 $1,500 580820 Grants/Aids- Econ Dev $6,140 $6,140 $6,200 $6,200 $6,200 Total Operating $36,845 $56,499 $74,517 $74,517 $83,422 Total Capital $0 $0 $0 $0 $0 TOTAL EXECUTIVE/LEGISLATIVE $711,266 $582,411 $612,491 $612,491 $690,077 39 66 Executive & Legislative 12 Commission 1100 Original Revised Account FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 Number Description of Expenditure Actual Actual Budget Budget Budget 510110 Base Wage- Mayor/Commission $75,330 $75,110 $74,400 $74,400 $74,400 520200 FICA $5,763 $5,746 $5,692 $5,692 $5,692 520240 Workers'Comp $80 $54 $148 $148 $166 Total Payroll $81,173 $80,910 $80,240 $80,240 $80,258 530314 Consulting $0 $0 $0 $525 $0 530411 Communication-Phone $3,840 $4,480 $5,760 $5,760 $5,760 550520 Operating $1,071 $1,282 $750 $750 $1,150 550525 Operating-Small Tools $700 $31 $0 $0 $0 555400 Travel&Per Diem $3,119 $2,194 $10,030 $7,405 $10,030 555470 Printing/Binding $71 $1,038 $1,250 $1,250 $1,550 555480 Promotional/Advertising $1,453 $3,777 $3,655 $5,755 $5,900 555540 Dues/Reg/Pub $10,669 $14,841 $12,254 $12,254 $12,225 580820 Grants/Aids- Economic Dev $6,140 $6,140 $6,200 $6,200 $6,200 Total Operating $27,063 $33,783 $39,899 $39,899 $42,815 Total Capital $0 $0 $0 $0 $0 TOTAL $108,236 $114,693 $120,139 $120,139 $123,073 40 67 Executive & Legislative 12 City Manager 1200 Original Revised Account FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 Number Description of Expenditure Actual Actual Budget Budget Budget 510100 Base Wages/Salaries $257,661 $213,485 $215,141 $215,141 $216,903 510140 Overtime $904 $2,449 $1,053 $1,053 $0 510900 Reimbursements $0 ($25) $0 $0 $0 520200 FICA $18,238 $14,480 $14,579 $14,579 $13,590 520220 Pension DB $57,751 $55,278 $59,145 $59,145 $61,514 520225 Pension DC $3,972 $246 $0 $0 $2,496 520230 Health Insurance $38,805 $25,653 $25,070 $25,070 $36,404 520240 Workers'Comp $268 $224 $392 $392 $418 Total Payroll $377,599 $311,790 $315,380 $315,380 $331,325 530315 Pre/Post Employment $0 $62 $0 $0 $0 530411 Communication- Phone $1,240 $990 $1,080 $1,080 $1,080 550510 Office $378 $630 $500 $500 $500 550520 Operating $489 $1,049 $560 $560 $560 550525 Operating -Small Tools $140 $319 $100 $100 $100 555400 Travel &Per Diem $20 $537 $608 $608 $608 555420 Postage/Freight $17 $288 $200 $200 $200 555470 Printing/Binding $0 $25 $0 $0 $0 555540 Dues/Reg/Pub $50 $3,750 $1,770 $1,770 $1,770 555550 Training $798 $319 $1,000 $1,000 $1,000 Total Operating $3,132 $7,969 $5,818 $5,818 $5,818 Total Capital $0 $0 $0 $0 $0 TOTAL $380,731 $319,759 $321,198 $321,198 $337,143 41 68 Executive & Legislative 12 City Clerk 1210 Original Revised Account FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 Number Description of Expenditure Actual Actual Budget Budget Budget 510100 Base Wages/Salaries $140,326 $99,890 $102,145 $102,145 $141,100 510140 Overtime $1,835 $2,594 $3,501 $3,501 $2,700 520200 FICA $10,654 $7,766 $8,196 $8,196 $11,122 520220 Pension DB $36,732 $0 $0 $0 $0 520225 Pension DC $3,722 $2,128 $7,926 $7,926 $9,049 520230 Health Insurance $22,229 $20,730 $20,392 $20,392 $30,823 520240 Workers' Comp $151 $104 $194 $194 $278 Total Payroll $215,649 $133,212 $142,354 $142,354 $195,072 530310 Professional $1,000 $4,814 $11,100 $11,100 $11,100 530315 Pre/Post Employment $0 $0 $0 $0 $63 530341 OtherSvcs-Contract/Admin $925 $487 $3,200 $3,200 $3,042 530411 Communication - Phone $160 $0 $960 $960 $960 550510 Office $95 $206 $440 $440 $325 550520 Operating $78 $32 $500 $500 $0 550525 Operating -Small Tools $244 $0 $0 $0 $0 555400 Travel & Per Diem $0 $820 $2,400 $600 $1,500 555420 Postage/Freight $326 $251 $428 $428 $394 555480 Promotional/Advertising $2,005 $6,077 $4,865 $8,865 $11,450 555540 Dues/Reg/Pub $1,338 $1,176 $1,607 $1,607 $1,905 555550 Training $479 $884 $1,800 $1,100 $2,550 555551 Educational Incentive $0 $0 $1,500 $0 $1,500 Total Operating $6,650 $14,747 $28,800 $28,800 $34,789 Total Capital $0 $0 $0 $0 $0 TOTAL $222,299 $147,959 $171,154 $171,154 $229,861 42 69 GENERAL FUND - GENERAL GOVERNMENT OVERVIEW All Divisions Original Revised FY 19/20 FY 20/21 FY 21/22 FY 21/22 FY 22/23 EXPENDITURES Actual Actual Budget Budget Budget Personnel Services $691,276 $752,756 $246,731 $270,196 $481,914 Operating Expenses ($818,496) ($795,342) ($266,115) ($165,245) ($534,875) Transfers $2,230,000 $2,480,000 $1,280,001 $1,280,001 $1,275,001 Capital Outlay $0 $21,351 $0 $0 $0 TOTAL EXPENDITURES $2,102,780 $2,458,765 $1,260,617 $1,384,952 $1,222,040 43 70