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FY 2011 Power Point Budget PresentationBudget Workshop For Fiscal Year 2011 What makes up the City's Budget ❑ Revenues James Kirk, Mayor Lowry Markham Dowling Watford D. Clayton Williams Mike O'Connor What makes up the City's Budget ❑ Revenues ❑ Expenditures ❑ Fund Balance Revenue - Past 3 years in Review ❑ Added Homestead Exemptions ❑ Added TPP $25,000 Exemption ❑ 10% CAP on Values ❑ Decrease in Taxable Values ❑Decrease in Sales Tax Revenues ❑ Decrease in Fuel Tax Revenues 1 Ad Valorem — 3 year change Ad Valorem is the City's largest source of revenue to fund services for its citizens Effects on Taxable Values from a Homeowners perspective: • Additional Exemptions, $25,000 Homestead • Senior Exemption, $25,000 • Save our Home Transfer • Decrease in Market /Assessed Values Taxable Values $357,5110.000 5335,010,001 $312,500010 5267.500,00 5245.001,00 S222,500,000 5200,000,000 26 9 Decrease 1 MIN ...1 ... 1 io,1ivom Ad Valorem — 4 year change lllustra Own TPP AE Tax @ Tax @ Tax @ 1.1 Tax @ 7.9993 'Based on . Using the 7.7432 rate this Business Owner's Tax bill will Decrease $57.00 this year from last year. s 660 in 2010. Ad Valorem — 3 year change Ad Valorem is the City's largest source of revenue to fund services for its citizens Effects on Taxable Values from a Business Owners perspective: • Tangible Personal Property Tax Exemption, $25,000 • CAP of 10% on Values • Decrease in Market /Assessed Values Ad Valorem — 4 year change Illustral Hom ASSE Tax Tax Tax @ 7.743: Tax @ T999: 'Based on a decrease of 15% assessed value decrease in 2009 and 15.0% in 2010 without save our homes. Using the 7.7432 rate this Homeowner's Tax bill will Decrease $77.00 this year from last year. 110 DO 4 as 446 460 Revenue Estimates ❑ Sales Tax Revenue amounts are leveling ❑ LCIR Estimates last year and this year have been more realistic ❑ Most major tax sources have `made estimate' or slightly exceeded forecasts by the inter- agency Revenue Estimating Conference. 2 What makes up the City's Budget ❑Expenditures Revenues Trends Prior years Ad Valorem Revenue vas40% of the Budget El AP VALOREM posits. REVIENUS • ▪ MRS, "OR MATURES& MENA LAMS • USES OP MONEY 200520116 20062007 2007,2008 20082009 2009/2010 2010/2011 General Fund FY Budget from year to year $5,700,000 $5,600,000 $5,500,000 $5,400,000 $5,300,000 $5,200,000 $5,100,000 Ilr IN =WI I 111101 2006/2007 20072008 20082009 20092010 O Flscal Budgets 3 State Revenue Estimates (LCIR) recorded in General Fund 6 Year Budgeted Revenues 2009 Initial Estimates 2009 Amended list. (Mar) 2010 L stimates 2010 Amended (Aug) Estimates Local eminent Half-Cent Sales Tax $353.179 0308,552 $233,696 8229,957 8262,748 Municipal Revenue Sharing $197.419 $194,677 $198,198 0191027 195,046 Local Discretionarc - 1 Cent $652,468 8581,063 $471.011 5463,475 5511,232 'total 5'100'!, LCIR Estimate - Reduction $1.203,066 81.084,291 $902,905 $888.459 $969,026 11,114,980 What makes up the City's Budget ❑Expenditures Revenues Trends Prior years Ad Valorem Revenue vas40% of the Budget El AP VALOREM posits. REVIENUS • ▪ MRS, "OR MATURES& MENA LAMS • USES OP MONEY 200520116 20062007 2007,2008 20082009 2009/2010 2010/2011 General Fund FY Budget from year to year $5,700,000 $5,600,000 $5,500,000 $5,400,000 $5,300,000 $5,200,000 $5,100,000 Ilr IN =WI I 111101 2006/2007 20072008 20082009 20092010 O Flscal Budgets 3 6 Year Budgeted Revenues 2005/2006 2006/2007 20072008 2008(2009 2009/20/0 2010/2011 Al) VALOREM 12,001,737 12.168,099 12,205,807 12.202784 31.897.466 21,618,556 OTHER FEES $ 976,721 31.114.719 11.098,169 $ 957.695 1 948,592 5885.023 INTERGOVERNMENTAL 64.130,421 $1.198.876 11142.864 51.068,233 1 912,862 5952,091 CHARGES FOR SERVICES S 878,434 11,114,980 $1,092883 $ 949356 1 951,430 51,061.666 FINES, FEITLmES& PENALTIES ALTIES $ 29,559 $ 39.709 5 41,307 $ 41,151 8 30,141 530,140 USES OF MONEY 5149.374 5 297,803 5176,081 S 30,000 1 20.000 12.000 OTHER REVENUES 9 125.426 5 145,303 $ 368,526 6 132.868 5 47,810 552,166 What makes up the City's Budget ❑Expenditures Revenues Trends Prior years Ad Valorem Revenue vas40% of the Budget El AP VALOREM posits. REVIENUS • ▪ MRS, "OR MATURES& MENA LAMS • USES OP MONEY 200520116 20062007 2007,2008 20082009 2009/2010 2010/2011 General Fund FY Budget from year to year $5,700,000 $5,600,000 $5,500,000 $5,400,000 $5,300,000 $5,200,000 $5,100,000 Ilr IN =WI I 111101 2006/2007 20072008 20082009 20092010 O Flscal Budgets 3 Cost Reductions x Tum off all non - essential lights, equipment, adjust thermostats X Utilization of email opposed to paper when possible x Train the trainer program ongoing to alleviate travel and overtime x Utilization of Part-time certified officers in lieu of overtime x Drilling a well at the City barn for cleaning of equipment x Replace all bulbs with CFL energy efficient bulbs x Utilize Fire department generator one day a week x Review water meters for necessity Supplies, Postage, Equipment Cost Reductions x Bi- weekly payroll in lieu of weekly — supplies and time savings x Business Tax Receipt renewals on postcards instead of letters - supplies & postage x Re -use of copier boxes for record storage x Re- inking printer cartridges x Purchase of more efficient equipment (ie: Network printers vs. color inkjet) City of Okeechobee Reduction in each departments operating expenses were realized with a total reduction in General Fund operational cost of: Over 3.6% in 2008 Over 7.7% in 2009 Over 13% in 2010 and an additional 3.7% this year. N 1 Fuel Cost Reduction X Road Patrol will park 15 minutes of every hour for foot patrol x No idling of parked cars x Combine trips in vehicles, ie: inspections, etc. Additional Accomplished Reductions Changed Health Insurance Craig A. Smith • Software Maintenance Contract • Audit Services • IRSC Business Development Board Additional suggested decreases. Shared Services 10% Okeechobee Main Street 10% Fiscal Year 2011 General Fund ❑ Total General Fund revenue plunged $1.3 million over the past 3 years ❑ The cumulative effect of the decrease in taxable values compounded by not using the roll back rate equates to more than a $550,000 decrease. ❑ With all the City's budget cutting efforts there remains an expected negative balance for year end 2011 of $460,937 4 What makes up the City's Budget Fund Balance N Weighing the Options Reserves ❑ The City has adequate reserves, the deficit represents only about 4% of reserves ❑ The reserves or rainy day fund should be used to level off the financial highs /lows ❑ Earnings alone on investments equate to more than $1.9 million Millage adjustment ❑ By not adjusting millage the City is jeopardizing future ability to levy adequately due to the `rollback' ❑ Even at the rollforward rate a resident will realize a 43% reduction from 2007, a 12% reduction from last year Weighing the Options ❑ Staffs' recommended budget includes a Combination of millage adjustment and use of prior years earnings: Option #2 Reserves Millage adjustment Use of Prior Earnings $220,910 Use of 1 mil + $240,027 City Investments — All Fund Types $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 REVENUES $0 2005 2006 2007 2008 2009 2010 Est FY 2011 Options Option 1 Use of millage rate as advertised (7.993) _ Use of Prior Earnings = $299,597 $161,340 Use of I mil Use of Prior Earnings Option 2 _ $240.027 $220.910 Usc of Prior Earnings Option 3 $460,937 c*A041H oxWoaooW *Alps REVENUES OTNER FEES 2 937 242 2. 948 592 699 639 2 8.35 023 5 too saes FINES. Fooyorrsyses y PENALTIES USES OF 1,10,1,8. PROPERTY 30 280 TRANSFERS EXPENDITURES FINANCIAL SERVICES 5 x6.339 s 201.698 5 200.869 2 202 828 n o.. or .o•en .auaa.. 6.663.1 Use et Pew EIVIIIII. S 21.603 3 141 340 o SS 027 > „. r 340 P0003 03 w. 0666 a . 344033 5