Summary
To: Town Commission
From: Ashley Bernal, Management Analyst
Date: 8/21/2018
______________________________________________________________________
Subject:
Title
2018-2019 Budget Discussion
Summary:
After making adjustments since the previous Commission meeting, staff presents the updated FY 18-19 Annual Budget for the General Fund, Water Fund, and Solid Waste Fund.
End
Body
Previous Commission Action: The Commission viewed a previous draft of the FY 18-19 budget on August 7.
Background/Problem Discussion:
GENERAL FUND
Revenues
Ad Valorem revenues have increased 9.64% for the upcoming year, which equates to an increase of $328,750. State Revenue Sharing increased by 8.75% as well, resulting in a total of $111,900. One particular item of notable increase is the Special Duty Police which is increasing from $2,000 to $91,960. Building Permit revenue is seeing a slight decrease, as staff expects this account to return to its baseline as Belleview Properties finish construction.
Overall, the Town is seeing an increase of 5.74% (or $311,884) in operating income. However, non-operating revenue items are projected to decrease nearly $390,000. Town staff continues to limit transfers from reserves in order to avert structural imbalances within the revenue budget.
Expenditures
Overall expenditure impacts across all funds include a salary enhancement of 1.5% COLA and potential 3.0% Merit increase.
Administration: The overall budget for this department has increased by $142,811, totaling to $782,101. This increase is largely due to a $112,400 placeholder for distribution to capital equipment reserve.
Building: This department is experiencing a net decrease of $1,300 related to reduced inspection costs, bringing the total to $149,710.
Support Services: This department’s expenses increased by $32,468 this year mainly due to personnel expenses, such as salary enhancements and staff restructuring.
Police: The largest area for increased expenditures in this department is personnel costs. There was a drastic increase in pension due to a payment error in the previous fiscal year, as well as the new cost of Special Duty Police totaling $83,400.
Public Works: This department is seeing a net decrease of $68,297, bringing the total to $902,200. This change is directly related to decreased capital costs.
Recreation: While this department is experiencing an increase in personnel, there is an overall decrease of $64,767, bringing the total to $809,750. Operating costs for summer camp are seeing an increase as well to aid with higher participation numbers.
ENTERPRISE FUNDS
Water Department
Revenues
Water Utility Revenue is expected to increase by $84,000 in comparison to the prior year. Staff utilized annualized average water usage data from 2014-15, 2015-16, 2016-17 and a proration of 2017-18 fiscal years for consumption calculations, in addition to estimating the increase from the Belleview Properties.
There is also a sizable increase in capital spending due to a matching grant from Southwest Florida Water Management District for the deep injection well exploration.
Expenditures
Increases in expenditures for this department are directly related to capital costs. This year, capital costs account for the rehabilitation of one well, chlorine transfer procedure, and the funds for the matching grant.
Solid Waste Department
Revenues
The Sanitation line item, which is the collection of sanitation fees, is seeing an increase of about $25,000 related to the Belleview properties.
Expenditures
There is a large decrease of $326,203 in this department, totaling $898,650, due to reduced capital purchases.
MINOR FUNDS
Local Option Gas Tax Fund: This fund is used to collect local option gas tax levied by the State. There will be no changes to this fund in this fiscal year, stabilizing at $55,050.
Tree Fund: This fund is expecting permit revenue of $10,000, combining with the $5,000 already in reserves, and totaling $15,000. These proceeds will be used for tree replacement.
Capital Projects Fund: This fund is utilized for capital improvements. Total capital expenditures for 2018-2019: $7,331,700, a revised Capital Budget and CIP are included in the agenda packet.
Wastewater Fund: This fund is used to collect revenues for Pinellas County Sewer and acts as a pass through. There are no changes to this fund.
Expenditure Challenges See above.
Financial Implications: See above.
Recommendation: None - this item is for discussion purposes only.
Proposed Motion None - this item is for discussion purposes only.