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HomeMy WebLinkAboutHandouts_Workshop_08/01/2008 (2)MEMORANDUM Village of Tequesta Clerk's Office TO: Mayor/Village Council FROM: Michael R. Couzzo, Jr. DATE: July 28, 2008 SUBJECT: 2008/2009 Budget Overview/Highlights I have prepared the following information as a complement to the proposed budget information distributed 7/25/08. Last year's challenge was developing a budget at the roll back rate compounded by an additional 9+% reduction. This year the Village faces additional budget challenges: Amendment 1, inflation, fuel costs, union contracts, reduced state revenue sharing, to name a few. Staff has worked long and hard to develop a budget that addresses all challenges while maintaining the current tax rate and level of service. The following highlights are provided as an overview and not meant to be comprehensive. I am available to meet each of you individually to review the budget detail and look forward to working with you during the budget process. General Fund Revenues • Ad Valorem Taxes -down over $500,000.00 from prior year (approx. 10%). • Intergovernmental Revenue -down over $43,000.00 from prior year (approx. 5%). • Inter Bond Revenue Fund (IBR) -this fund is no longer required as a result of refunding 1998 Water Utility Bonds. One time transfer $230,000.00 (revenue). • Building Permit Fees - projected revenues down $160,000 from prior year budgeted (approx. 44%). • Original Budget Revenues - 2007/2008 $9,299,108 vs. 2008/2009 $9,012,805 (decrease of approx. 3.2%) Expenditures • Village Council -Aid to Community Organizations -reduced by $5,000.00 (approx. 33%). • Human Resources -Personnel cost increasing as a result of sharing one position with community development. • Legal -Expenses reduced for special and personnel services. A 5% increase is being recommended in hourly charges for Village Attorney. Memo -Page 2 of 4 • General Government -Personnel charges accounted for IT manager, previously charged to Police Administration (this function provides support services to all departments). • Police Operations -Capital Outlay, proposed purchase of (2) road patrol vehicles, tazers, mobil and hand held radios. -Personnel, all code enforcement charges transferred from Community Development. • Building and Zoning -department re-alignment of personnel and functions for reception, code enforcement, and occupational licenses. -Capital Equipment, proposed purchase of scanner capable of scanning large prints for electronic files establishing core electronics data base. • Fire Control -budget for all personnel operations, and capital (consolidates fire control and rescue budgets). • Public Works -Capital Machinery & Equipment, proposed purchases: mobil sign boards, bob cat multi-function utility vehicle, and 10,000 gallon gasoline fuel tank (shared expenses with water and storm water). -Street scape Trees -proposed funding $20,000.00 for small beautification projects, and material replacement. • Leisure Services -Capital Equipment, purchase of one artificial holiday tree for Village Hall. • Debt Services -Capital Equipment - lease/purchase one new (replacement) ambulance. • Transfer to Capital Improvement Fund - $75,000.00 for construction of Tequesta Bridge (new). Miscellaneous Budget Assumptions - 1. All Union IAFF, CWA, PBA terms and conditions have been calculated and included. 2. Health Insurance has been calculated and included as instructed in executive session. 3. Non- union full time permanent employee's salary increase have been calculated and included based upon a 2% COLA & 3% merit (conditional upon receiving a satisfactory performance evaluation). Tequesta Bridge Construction -a separate budget for the construction of a new bridge (lighting, drainage, pavement, stripping, landscaping, fishing piers, etc.) is being prepared for Council consideration. Water Fund Revenues • Water sales -All sales remain difficult to predict (due to restrictions), estimates are projected to be $237,500.00 (10%) less than budgeted in previous year. Memo -Page 3 of 4 • Interest Income - as rates of return on investment continue to be low -projections have been reduced (approx 55%) Expenditures • Capital Outlay - as previously noted in public works general fund, equipment purchases are shared with water & storm water. -Pipeline -removal of bridge mounted water main and reinstall new piping under river. Budgeting $125,000.00. • Debt Services -significant long term debt reduction resulting from 1998 Water Reserve Bond Refinancing. • Other Uses -Allocate to fund balance (reserves) $275,000.00 for future capital projects. The expansion of the plant by constructing R/O train #3 is not being proposed in fiscal year 2008/2009. Additionally, the administration will continue to evaluate system wide needs and report to Council in October on findings as it pertains to the need for utility rate increases. Refuse and Recycling Revenues • Refuse/Recycling fees: Although Waste Management has increased their annual per unit charge from $131.04 to $138.72 (approx 5.8%), we are recommending that the fees be increased to $135.60 and existing fund balance be used to make up the deficit. • Appropriated Fund Balance: as noted above existing fund balance will be used to decrease the 2008-2009 non-ad valorem fees to residents. Expenditures • Residential-Solid Waste/Recycling/Yard Waste: at this time, although we received the new rate from Waste Management, we do not have a breakdown between solid waste, recycling and yard waste and have presented all costs in one line item. As noted above, these rates have increased approximately 5.8% from the prior year. It should also be noted that the number of units that are participating have increased from 3157 on the prior year to 3201 (according to the tax roll from the Solid Waste Authority). Stormwater Utility Fund Revenues • Storm Water Utility Fees: The stormwater utility assesses individual residents and businesses a fee based on the amount of impermeable surface that exists Memo -Page 4 of 4 on their property as there is a direct correlation between the amount of impervious surface and amount of stormwater runoff. Village staff reviews any changes that have been made to properties during the year and various formulas are used to determine applicable fees. Based upon these calculations, the revenue from this source is budgeted at $330,190; an increase of approximately 8.6%. Expenditures • Operating Expenses: Overall operating expenses have decreased $44,425 (approximately 38.5%) with the majority of the decrease in drainage maintenance. • Capital: As noted earlier, the stormwater utility is sharing the cost of a 10,000 gallon gasoline fuel tank with the general fund and the water utility. • Allocate to Fund Balance: the excess of revenues over expenditures ($183,940) is budgeted to flow back into the fund balance for future stormwater projects.