CC Minutes 07/12/2011 Budget Workshop

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In preparing the FY12 budget, City staff strives to promote sensible solutions in tough economic times. Department directors were solicited to advance strategic thinking regarding current and future service delivery and organizational efficiency. As such, major initiatives relating to new directions in fire service delivery and increased ALS fees are under negotiation and development. Successful negotiations in Fire Department service delivery could conservatively yield in excess of $100,000 or more annually. Until the negotiations are completed, no additional revenue is programmed in the proposed budget. However, recent survey data indicates that the City needs to adjust its ambulance service (ALS) fees. Staff is currently developing new rates for adoption by the City Commission which could provide an additional $200,000; these rate changes are anticipated to be adopted during FY11 and the new funds are included in the proposed FY12 budget. Rate adjustments for water and sewer utilities are also programmed in the FY12 budget as they have previously been adopted by the City Commission. Thus, this proposed FY12 budget is balanced utilizing various cost containment strategies, the employment of operational efficiencies and adjustments to ALS rates charges. The budget remains cautiously conservative in revenue and expenditure forecasts for the upcoming fiscal year. As a result of these efforts, the Proposed Operating and Capital budget for FY 2012 achieves fiscal sustainability in day-to-day service provision. The General Fund is balanced without using one-time monies or reserve funds. It is constructed to ensure the City's viability even in a period of continued economic uncertainty while meeting the basic expectations of the government's stakeholders and maintaining the City Commission's long range plans. With this new budget, the City achieves the "new normal" as a smaller, but sustainable governmental entity providing responsive, quality services in an efficient manner, with a new focus of "rebuilding" our Casselberry community. qg 1, BUDGET IN BRIEF CASSELBERRY The proposed total budget for FY 2012 is $42,997,487 compared to the FY 2011 budget of $40,492,507, representing an overall increase of 6.19%. This increase of $2,504,980 is primarily accounted for in capital projects as follows: • The Neighborhood Improvement Program is one of the highest priorities of the budget; focusing on road surface projects, sidewalks, traffic calming and signage, among other elements. Approximately $557,400 is retained in fund balance in the FY12 budget in a capital project fund to address this visionary goal of the Commission. • In accordance with the 10 -Year Stormwater Master Plan, projects for FY 2012 represent an increase of almost $987,000 in order to keep the lakes clean and the drainage systems operational as well as improve stormwater quality City-wide. An additional $131,400 was appropriated for drainage improvement related to the Triplet Lake Signature Street Project. • The Water Utility Fund for renewal and replacement accounted for an overall increase of $466,750. This increase reflects various initiatives of the Public Works Department to adhere to the 10 -year Utility Master Plan for the production, collection and distribution of potable water and the treatment and disbursement of sewage. In the FY 12 Operating Budget, continued suspension and containment of pay adjustments, inclusive of those attributed to the Florida Retirement System, as well as reorganization efficiencies accounted for an overall City- wide decrease of $351,335 for personnel costs. A-3