CC Minutes 07/09/2013 Budget Workshop

Home Browse Search

the Equipment Replacement Fund (ERF) is increased in FY 2014 by $144,500 to match current needs. ERF spending is generally fueled with debt proceeds from capital leases which are correspondingly higher in FY 2014. Stormwater Fund has increased Capital Improvement requests in FY 2014 over what was requested in FY 2013 by $529,100, which is largely drawn from fund balance. Highlights of Note in the Proposed Budget for FY 2014 o The millage rate is requested to remain at 5.45 mills. The City is anticipated to experience an increase of 2.7% of taxable property value applicable to FY 2014; the City will budget to collect about $101,000 more in property taxes than it did in FY 2013. The growth is driven by appreciation in the tax base derived from sales of real property. The valuation includes the sale of Newport Colony Apartments which by itself added $10,000,000 in new taxable value and 40% of the overall growth in taxable value. e A salary merit increase is requested in an amount to average 3% for all employees (except the City Commission and the City Manager). The increase is planned to be effective January 1, 2014, creating an effective increase of 2.25% for the fiscal year. The City Commission provided some relief to employees in FY 2013 after almost four years of wage freezes through a salary cost of living adjustment. Employees' salaries have not kept pace with inflation over the past several years while the rate freeze was in effect. During the period of frozen wages, inflation was measured to be 4.4%. Inflation continues to increase and is projected to be 1.4% in CY 2013 and is predicted to be 2.3% in FY 2014. o The General Fund budget is balanced with no draw on fund balance needed to supplement the proposed spending level. The economy is slowly recovering and is beginning to show some signs of prosperity. Property taxes are expected to increase for the first time in several years. Sales tax revenues and state municipal revenue sharing are reflecting slight increases. Operating expenses have been maintained without any large increases in anticipated spending. o An amount of $50,000 has been set aside In the Community Development Planning Division to fund a neighborhood grant program. Program details and eligibility will need to be approved by the City Commission. m The City's employee count has increased by two full-time positions and has been reduced by 3 part-time positions. These changes are necessary to provide adequate staffing levels for the many cultural events the City provides its citizens throughout the year. o Water or sewer rates are approved to increase in the FY 2014 Proposed Budget. A rate study was completed in FY 2013, which called for a rate change in FY 2013 and 5% increases in utility rates for each year from FY 2014 through FY 2017. The water and sewer budget is developed within the constraints of anticipated revenue collections as projected by the rate study. o The Community Redevelopment Agency (CRA) has requested $550,000 for the purchase and assembly of land to clear blight and stimulate new economic development. o The Capital Improvement Fund has programmed $1.4 million for road rehabilitation costs within the City. These include Areas 4 - 7 of the Neighborhood Improvement Program. These areas will see significant mill and resurfacing done for roadways in the neighborhoods in the south end of the City. o The Water and Sewer Utility Fund reflects increased capital spending on varied capital projects. A granular activated carbon filter is planned to be constructed due to regulatory requirements for $2,000,000. Planning for this project was completed in FY 2013. Additional funding for A-3