JUNE 7 2012 BUDGET WORKSHOP NO. 1 12-13 FISCAL YEAR BUDGET FORMAT Innovation will serve to keep the plan in the forefront of all that we do. Our actions.

JUNE 7 2012 BUDGET WORKSHOP NO. 1

12-13 FISCAL YEAR BUDGET FORMAT

Innovation will serve to keep the plan in the forefront of all that we do. Our actions should always be advancing the Plan.

Operation Innovation

Innovation of the Business Plan

This continues the evolution of the City’s fiscal transformation efforts to produce a more transparent document, greater accountability to the citizens, and improve the accuracy, efficiency and timeliness of financial information.

Today’s purpose is to solicit City Council direction of the previously adopted budget process, format, and key management principals.

Workshop Schedule

Schedule of FY 12-13 Council Work Sessions:

June 7- Budget Format Workshop* June 26- Capital Projects & Replacement/Renewal Fund

Workshop* July 10- General Fund (and smaller ancillary funds) Workshop* July 24- Enterprise Fund Workshop (Electric,

Telecommunications, Water/Sewer, Sanitation, Golf & Airport)*

August 7-Preliminary Budget Presentation Workshop* TBA- 1st Reading Tentative Budget (Public Hearing) TBA- 2nd Reading Final Budget (Public Hearing)

*11:00 Council Lunch*11:30-1:30 Work Session (Council Chambers)

FY 12-13 Budget Format

There will be separate documents for workshops versus public hearings in September. All documents will be disseminated electronically.

The Fiscal Managers/Department Heads for the service areas will be involved in the presentation of their respective budgets.

All budgetary decisions will be tied to one or more goals in the Strategic Plan.

We are utilizing 7 strategies to balance the budget for FY12-13.

In FY 11-12 we successfully accomplished the following: Migration to the State Chart of Accounts for Expenditures Bringing the Internal Service Funds into the budget Budgeting all dollars including reserves Adoption of GASB 54 Fund Balance Policy

Changes Between FY11-12 Budget and FY 12-13

Certain departmental fee increases will be presented for adoption with the Budget.

The Key Management Practices will be reviewed and updated for adoption with the Budget.

Exploring plan for migration to State Chart of Accounts for Revenues during FY 12-13.

7 Strategies being Utilized to Balance the FY 12-13 Budget1. Blueprint to Fiscal Sustainability2. 3% & 10% budget reduction submittals3. 911 Communications Consolidation4. Pension Reform5. Debt Refinancing6. Interfund Transfers7. Voluntary Separation Incentive Program

Initiatives Progress

A strategic blending of the 3% & 10% cuts have been incorporated into the current budget scenario

The Debt refinancing has been incorporated into the current scenario

Interfund transfers will be the same as FY11-12 with a decrease of $1.5M from the Police/Fire Mil fund

Items of Discussion

TRIM Process Fees & Taxes Revenue Projections Community Redevelopment Area (CRA)funding

priorities Capital Improvement Plan (CIP) funding Current General Fund Deficit

Millage Comparison

Value of a mil (at 95% collection rate):

2010- 1 mil- $3.9M2011- 1 mil- $3.7M*2012- 1 mil- $3.5M*Based on June 1, 2012 Preliminary estimate from Property Appraiser

Recommendation for FY 12-13 is to adopt the rolled-back Rate. This is the Revenue Neutral option.

Fees &Taxes

The same services will be provided at the currently established service levels

There are no tax increases programmed in the budget The Departmental Service Fee increases recommended in

FY 12-13 are designed to cover the true cost of service The Fire Fee will remain at the current level for Residential

and Commercial The comprehensive fee schedule will be presented to

Council for adoption along with the Budget

Revenue & Growth Projections We expect CDBG dollars to be flat in FY 12-13 Tax Revenues (sales tax, communications tax, gas taxes

etc) are expected to remain flat We have programmed transfers from the Enterprise funds

at the same level as FY11-12 The transfer from the Police/Fire ¼ Mil fund has been

reduced to $1M from the $2.5M in FY11-12 (one time revenue source)

Any recovery of Economic Improvement Program dollars will roll back into the program to fund future projects

We expect a very modest increase in growth of new business and building throughout the City, but expect to budget conservatively

CRA Funding Priorities

Funding for projects and ongoing operating are very limited within the CRA.  

Fund Balance: $3.6M

Annual Revenue: $600K

Proposed Project Budget Estimate Comments

Negotiated Demolitions $50,000 Ongoing

Façade Grant $50,000

Downtown Signage (Merje) $100,000 Ongoing

Imagine North Magnolia $172,705 Ongoing

Parking Garage (Land Acquisition)$300,000

Parking Garage (Design) $406,444

Parking Garage Construction $7,500,000 Ongoing (Debt Service)

Gas Light Parking Lot $80,000/ $600,000 Option 1/Option 2

Osceola Linear Park $1,500,000 Minimum (SR 40 to NE 5th Street)

Senior Manager, Redevelopment $90,000 Ongoing

CIP Funding Plan

Bond funds are limited and should run out by year end FY12-13 Project requests exceed funding availability Several projects are multi phase, however funding beyond

phase 1 is not presently available (puts additional pressure on the General Fund)

Most CIP revenue sources are non recurring in nature Key Management Practices indicate

Capital Expenditures: All capital projects planned and budgeted for in any given fiscal year will have funding identified and proven to be available. This means that all projects are subject to funding already received in prior fiscal years. Funds that are earmarked for receipt during the current fiscal year will not be utilized for current year expenditures.

General Fund Assumptions

Revenue Assumptions

Includes $1 million transfer from fire/police improvements fund

5.1% decrease in property values

Assumes that revenues remain flat

Expense Assumptions

Non-Departmental Operating and Transfers To Other Funds will remain flat

Does not include all grant expenses as a majority are brought into the budget after adoption

Does not include support to the Ocala Municipal Golf Course

Includes approved special requests

Does not include OPD's position requests, increase requests, or upgrades

Additional 3% request from OPD included for planning purposes only

$79,725 moved from OPD's general fund budget to the Police Trust and Agency Fund

Does not include reserves

General Fund Status FY12-13

GENERAL FUND REDUCTIONS BY PERCENTAGE

Adopted YTD Revised Increase/ Increase/

FY 10-11 Budget Actuals Base Budget Decrease Decrease

  Actuals FY 11-12 FY 11-12 FY 12-13 Amount Percentage

Revenues $50,808,008  $48,592,420  $35,069,181  $48,570,411  $(22,009) -0.05%

Transfers from Other Funds $11,358,680  $15,242,555  $9,964,509  $13,742,555  $(1,500,000) -9.84%

Total Revenues & Transfers $62,166,688 $63,834,975 $45,033,690 $62,312,966 $(1,522,009) -2.38%

Operating Expenditures $63,133,849  $64,730,249  $39,519,896  61,918,769  (2,811,480) -4.34%

Transfers & Reserves $3,333,077  $3,642,608  $2,536,656  4,020,829  378,221  10.38%

Total Expenditures $66,466,925 $68,372,857 $42,056,552 $65,939,598 $(2,433,259) -3.56%

REVENUES - EXPENDITURES $(4,300,237) $(4,537,882) $2,977,138 $(3,626,632)

Decision Points

CRA funding priorities CIP funding and adherence to Key

Management Practices General Fund Deficit funding

Questions/Comments