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File #: 20-0159    Version: 1 Name:
Type: Discussion Items Status: General Agenda
File created: 6/12/2020 In control: Town Commission
On agenda: 6/16/2020 Final action: 6/16/2020
Title: 2020 - 2024 Forecast Summary: General Fund Departmental Summary 2018 Budgeted 2019 Budgeted 2020 Projected 2021 Projected 2022 Projected 2023 Projected 2024 Projected Administration $ 782,101 $ 801,500 $ 819,070 $ 847,790 $ 888,150 $ 920,260 $ 964,230 Building $ 149,710 $ 211,300 $ 212,340 $ 216,200 $ 220,280 $ 224,690 $ 229,320 Support Services $ 2,132,800 $ 2,173,600 $ 2,296,460 $ 2,405,440 $ 2,524,430 $ 2,650,910 $ 2,785,450 Police $ 1,720,350 $ 1,873,300 $ 1,942,780 $ 2,010,690 $ 2,093,950 $ 2,181,100 $ 2,272,450 Public Works $ 902,200 $ 900,950 $ 878,000 $ 909,590 $ 945,970 $ 984,240 $ 1,024,510 Recreation $ 798,710 $ 853,050 $ 890,910 $ 920,370 $ 955,970 $ 993,160 $ 1,032,290 Total Expenditures $ 6,485,871 $ 6,813,700 $ 7,039,560 $ 7,310,080 $ 7,628,750 $ 7,954,360 $ 8,308,250 Total Revenues $ 7,100,611 $ 6,813,700 $ 6,898,900 $ 7,179,410 $ 7,352,520 $ 7,532,050 $ 7,718,330 Surplus/(Deficit) $ 614,740 $ - $ (140,660) $ (130,670) $ (276,230) $ ...
Attachments: 1. Preliminary and Forecast Packet
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Summary

To: Town Commission

From: Ashley L. A. Bernal

Date: 6/16/2020

______________________________________________________________________

Subject:

Title

2020 - 2024 Forecast

 

Summary:

 

General Fund Departmental Summary

 

 

 

 

 

 

 

 

 

2018 Budgeted

2019 Budgeted

2020 Projected

2021 Projected

2022 Projected

2023 Projected

2024 Projected

Administration

$ 782,101

$ 801,500

$ 819,070

$ 847,790

$ 888,150

$ 920,260

$ 964,230

Building

$ 149,710

$ 211,300

$ 212,340

$ 216,200

$ 220,280

$ 224,690

$ 229,320

Support Services

$ 2,132,800

$ 2,173,600

$ 2,296,460

$ 2,405,440

$ 2,524,430

$ 2,650,910

$ 2,785,450

Police

$ 1,720,350

$ 1,873,300

$ 1,942,780

$ 2,010,690

$ 2,093,950

$ 2,181,100

$ 2,272,450

Public Works

$ 902,200

$ 900,950

$ 878,000

$ 909,590

$ 945,970

$ 984,240

$ 1,024,510

Recreation

$ 798,710

$ 853,050

$ 890,910

$ 920,370

$ 955,970

$ 993,160

$ 1,032,290

 

 

 

 

 

 

 

 

Total Expenditures

$ 6,485,871

$ 6,813,700

$ 7,039,560

$ 7,310,080

$ 7,628,750

$ 7,954,360

$ 8,308,250

 

 

 

 

 

 

 

 

Total Revenues

$ 7,100,611

$ 6,813,700

$ 6,898,900

$ 7,179,410

$ 7,352,520

$ 7,532,050

$ 7,718,330

 

 

 

 

 

 

 

 

Surplus/(Deficit)

$ 614,740

$ -

$ (140,660)

$ (130,670)

$ (276,230)

$ (422,310)

$ (589,920)

 

Currently, the budgetary estimates for the fiscal year 2020-21 are forecasted at a preliminary deficit of $140,660. It is critical to state that these are strictly forecasted numbers, no budgets have been submitted for approval. This forecast is used to illustrate revenue growth over expenditure growth and serve as the starting block for this year’s budget process. These numbers are not intended to serve as a five year budget, as they do not take into account any policy changes or budgetary decision making.

 

This is largely due to the decrease in large revenue items, such as the Sales Tax Revenue and State Revenue Sharing accounts. The Town budgets for operations based on the revenues generated, which allows for certain expenditure options to be approved, such as salary adjustments. Cost of living and merit increases, totaling 5%, are currently included in the deficit.

 

The impact of COVID-19 is still being examined at federal, state, and local levels, but preliminarily staff has already estimated some effects on revenue accounts based on current revenue collections With the economic closures of COVID-19, restrictions resulted in significant reductions of sales taxes  and fees. We are estimating  30% reductions to  Sales Tax and State Revenue Sharing.

 

The entirety of the impacts of COVID-19 are still being examined by staff. At this time, sales tax and consumer based revenues are the accounts that have been reduced the most. We also expect to see reductions in Penny for Pinellas collections, local option fuel taxes and other motor fuel taxes.  More information on these impacts  will be available in late July from the state’s Department of Economic and Demographic Research and Pinellas County. Once this information is available, it will be included in the forecast and budgetary estimates.

 

OVERALL ASSUMPTIONS

Departments town-wide are mainly experiencing increases only in their personnel lines.No increases in operating expenses have been calculated for the upcoming fiscal year.  Additionally, any departments that utilize a vehicle debt service will experience a small decrease in the object, as the debt is paid around halfway through the year. More information about the expenditures and revenues are available in each department summary within this document.

 

ADMINISTRATION

The Administration Department is likely to experience the largest increase in personnel lines. This is due to employees receiving certifications and degrees in the 2020-2021 fiscal year. At this time, the other objects within this department are not likely to increase in the next fiscal year.

 

BUILDING

In the future, the Building Department may experience a small decrease in operating expenses, as Contractual Labor (#53160) should continue to decrease with more efficient inspections.

 

SUPPORT SERVICES

The Support Services Department is expected to continue to grow in the coming years due to contractual services increasing, such as Largo Fire Services (projected at 5%, or $31,130) and General Liability Insurance (projected at 10%, or $27,500).

 

POLICE

The Police Department is projected to experience the largest increases with personnel. In the department's operating expenditures, Professional Services, which is responsible for the Sheriff’s Department contract, is projected to increase by 1.5% year over year.

 

PUBLIC WORKS

This department is incredibly stable with expenditure expectations. There is the traditional standard 3% on most line items in the future to account for inflation, while some objects maintain a 1.5% increase. These line items contain contracts that could be negotiated for a smaller increase.

 

RECREATION

The Recreation Department was heavily impacted by the restrictions implemented during COVID-19. The full effects of this are still being examined by staff and more information will be available in late July. As of now, there are minimal increases projected in the operating expenditures, with 3% being the standard increase for programs.

End

Body

Previous Commission Action: Approval of the 2019-2020 fiscal year budget

Expenditure Challenges: Revenue reductions related to COVID-19. Impacts detailed within attached documents.