CC Minutes 04/25/2011 Workshop - Laserfiche WebLink

Home Browse Search

FY 2011/12 Budget Assumptions CRAM The City of Casselberry supports a Community Redevelopment Agency (CRA) to promote private sector activity in the City. The CRA is funded through Tax Increment contributed by the City of Casselberry and Seminole County. The tax increment is the levy of both taxing authorities on appreciated taxable value over that base year. Tax Increment Revenue fell 16.36% in fiscal year 2010 and an additional budgeted drop of 39.73% in fiscal year 2011, These decreases are attributed to the lack of new construction in the City and that there has been no increase in millage to compensate for loss in taxable value. For FY 2011/12 the Property Appraiser is expecting an additional decline in citywide property values of 7-9%. The Property Appraiser further assumes that with no economic recovery; property values are expected to further decline 3% in 2012/13, no growth in FY 2013/14 and return to a moderate 2% increase in FY 2014/15 and FY 2015/16. The forecast projects a 2% increase for years FY 2016/17 thru FY 2020/21. WHAT -IF ANALYSIS The pro forma model for the General Fund is designed to allow changes to the primary underlying assumptions. Selectively changing assumptions to determine the impact on the model's results is commonly referred to as "Sensitivity Analysis". Essentially it measures the significance of any assumption in projecting the results. Due to the additive nature of compounding the impacts will not be an exactly identical absolute value. The assumptions utilized in this model incorporate Commission approved increases in ambulance service fees and business taxes resulting in annual revenue increases of $100,000 and $20,000, respectively. A joint venture with the City of Longwood to consolidate Fire Services resulting in an annual decrease in operating costs of $200,000. CONCLUSION The function of local government is ultimately limited by its ability to pay for services. The challenge is to continue to identify the most critical priorities and direct resources to those areas; maintaining a budget that reflects an appropriate and responsible plan for meeting the core services and requirements of the community. The challenges and opportunities that face us are below: The financial strategy employed to achieve long-term financial stability was to rebalance operations through a blend of expenditure reductions and the identification of operational efficiencies through review and evaluation of essential programs and services. This proactive financial planning, at the department level, will be required as we move into the future as expenditures must be expected to grow in some moderate level. Sustainable revenues will need to keep pace. Prioritizing a capital program and allocating funding in accordance with the ranking to ensure the development of a physically, culturally and economically diverse community. A preservation of fund balance reserves must be emphasized in order to build a financially resilient government. As the economy continues its sluggish climb to recovery, continuous diagnosis of the day-to-day environment validates whether strategies are operating in accordance with planned stakeholder objectives. Despite the current economic environment we must move forward as a collaborative force to sustain our future. City of Casselberry Page 7