CC Minutes 07/12/2011 Budget Workshop

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The FY 2012 proposed budget includes as an operating expense $100,000 for economic incentives which, if distributed, will draw down the CRA Fund Balance. At the time of budget development, the CRA Board has not approved the operating budget of the CRA. It is anticipated that the continuing decline in taxable property values and associated TIF funds as well as commitments for proposed capital projects will significantly limit the activities of the CRA. x NEIGHBORHOOD IMPROVEMENT FUND CASSELBERRY The Neighborhood Improvement Program will be established in FY11 to appropriate funding for the City Commission's vision of a major new residential initiative. Amounts anticipated to be expended in FY 2012 approximate $557,400 from this fund. The global perspective of this major vision project includes the following funds and amounts related to the Triplet Lake Signature Street Project of $1.1M: *Neighborhood Improvement Fund - $557,400 *Water and Sewer Capital Improvement Fund - $406,600 *Stormwater Fund - $131,400 *Tree Fund - $16,000 Additionally, approximately $352,577 has been accumulated in the fund balance of the Neighborhood Improvement Fund for future appropriated projects related to the new residential initiative. DEBT AND DEBT SERVICE FUND CASSELBERRY The total debt of the City beginning FY 2012 will be $21,352,597, reflecting a decrease of 8.5% or $1,990,587 due to the pay down of various notes throughout the 2011 budget year. Significant changes to the debt schedule include: General Fund Debt - Proposed capital lease financing for a dump truck, two code enforcement vehicles, a Fire Battalion Chief vehicle, Fire hydraulic equipment, Police radios and Police patrol vehicles reflect an increase in capital leases of $260,000. Debt Service Fund — Includes debt service related to interest -only notes that were originally issued six years ago to enable the acquisition of the 15+ acre City Center site and the lakefront parcel on Lake Concord which are currently held for resale and redevelopment. The current source of funding for these interest -only notes is from the Community Redevelopment Agency. The notes do not qualify as tax exempt and carry short-term rates much higher than investment returns will offer. The City has accumulated a level of unrestricted fund balance sufficient to pay off the issues. Principal on these notes will become due in FY 2012. Refinancing as "interest only" notes are questionable as a viable financing option at this time. The proposed budget assumes interest payments of $255,651 related to these notes until further direction from the Commission ($141,801 for the Lake Concord property and $113,850 for the City Center). A-12