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07-16-2012 - Budget Workshop CITY COUNCIL OF EDGEWATER WORKSHOP MEETING JULY 16, 2012 6:00 P.M. COUNCIL CHAMBERS MINUTES 1. CALL TO ORDER, ROLL CALL Mayor Thomas called the Workshop to order at 5: 00 p.m. in the Council Chambers . Present Mayor Michael Thomas Councilman Justin Kennedy Councilwoman Gigi Bennington Councilman Gene Emter City Manager Tracey Barlow City Clerk Bonnie Wenzel City Attorney Aaron Wolfe Excused Councilman Michael Ignasiak 2. DISCUSSION OF FY 2012/2013 BUDGET Powerpoint Presentation City Manager Barlow informed Council this was only a workshop to establish the maximum millage rate that would be advertised. He then turned the meeting over to Finance Director John McKinney. Mr. McKinney went over the attached Powerpoint presentation by describing The Effects on the Taxpayer, Tax Roll "Net Increase in Real Property Just Value - Excluding New Construction", Median Sales Prices - Single Family Residences 1998 - 2011, 2007 and 2012 Property Tax on a Residential Home in Edgewater, 2007 Final Total Tax Roll Breakdown - Taxable Value, and 2012 Preliminary Tax Roll Taxable Value by Property Class . There was discussion regarding diversifying the property classifications because of them having always been so heavily reliant on residential and that the initiatives put in place for commercial and industrial by the Council were working. Mr. McKinney continued his presentation by describing the Rolled Back Rate vs . Adopted, Property Taxes Per Capita, and Tax Analysis . There was a brief discussion regarding the effort to rely less on ad valorem. 1 Council Workshop July 16, 2012 City Manager Barlow commented on the 30 Years of History. Mr. McKinney continued his presentation by describing the General Fund Budget Breakdown FY2008 and FY2013. Mr. McKinney and City Manager Barlow answered questions presented by Councilwoman Bennington and Councilman Kennedy. City Manager Barlow commented on Edgewater being more marketable to be able to attract manufacturing type businesses with regard to having lower utility costs . There was further discussion regarding the initiatives the Council put in place. Mr. McKinney further answered questions asked by Councilman Kennedy with regard to transferring from the Enterprise Funds and the cost allocation portion of the General Fund budget. Mr. McKinney continued his presentation by describing the Budgeted Revenue Outlook FY2013, Budget Expenditure Outlook FY2013, Budget Strategies Used for FY2013, City Wide Debt Reduction, Current Budget, General Fund Capital, Street Resurfacing. There was further discussion regarding the listing of additional streets to be paved in priority order and the necessary millage increase that would be needed to fund paving additional streets . Mr. McKinney continued his presentation by describing the General Construction Projects and Fund Reserves . Mr. McKinney then went over the budget calendar by identifying the meeting dates . Councilwoman Bennington questioned if the proposed millage would be set at 6. 47 . City Manager Barlow informed her that was the recommendation and that they would continue to work to reduce that but he wasn' t sure if he could get to roll back. Councilwoman Bennington expressed concern that if they didn' t take care of some of the roads now the cost would continue to go up. City Manager Barlow informed her any additional roads they would add they would have to add to the millage . There was further discussion regarding adding the portion of SR 442 from U.S . #1 to Riverside Drive and the need to increase the millage to 6. 5695 in order to do that. Councilwoman Bennington wanted to set it a little higher in case there was something the Council wanted to see. She spoke of the streets being so important and needing to be done. 2 Council Workshop July 16, 2012 City Manager Barlow informed Council of their two options . There was a discussion regarding it costing each property owner an additional $2 . 48 if the Council added the paving of SR 442 from U. S . #1 to Riverside Drive. Councilwoman Bennington felt this should be added due to this being a prime road. After further discussion it was determined the road being talked about was in reality the southern end of Riverside Drive and not SR 442 from Riverside Drive to U.S. #1 . It was decided to just leave the millage as it was . Councilman Emter felt because they have needs all over the City, it would seem judicious to include this as a recommendation at this time. He suggested reevaluating the paving later to see what they really can use. He felt it was worth looking at and evaluating for an additional cost to the taxpayer of $2. 48 . He further suggested they advertise at 6. 54 mills after which they can reevaluate the whole budgetary process . He felt if it was needed they would have it. City Manager Barlow pointed out he had one additional Code Enforcement Officer included in this budget at a cost of $40, 000 . 3. ADJOURNMENT There being no further business to discuss, the Workshop adjourned at 6: 00 p.m. Minutes submitted by: Lisa Bloomer, CMC Attest: APPROVED: City of Edgewater, Florida Bonnie Wenzel, City Clerk Michael L. Thomas, Mayor 3 Council Workshop July 16, 2012 Edgewater General Fund Preliminary Budget Workshop July 16, 2012 The Effects on the Tax Payer 2012 Volusia Preliminary Tax Roll (Total Percent Charge 2011 -2012) East Volusia Cities Just Taxable Daytona Beach -4.31 -= ?��'= _. Da��tana Beach Shores 6.45 °gib 3.65 °�0 Edgewater 4.55 °�a 2.20 °�0 Fla ler Beach 17.92 °�0 12.46�'�0 Holly Hill -�� 4-c'= -- Qr =�'= New Smyrna Beach 3.53 °.•�o 2.04 °�a Oak Hill 1.32"�� 1.0500 Ormond Beach 20'=o -1 r,lJ�`c Ponce Inlet 2.28 °,!0 1.13 °,fo Just Taxably Deland -2 ���9 °�4 -� 40 °�0 Deltona -��� r�go.� _�-� ,�,a��,o Lake Helen -�� 22 °'0 o Orange Cit�i - 2.53 °0 - 2.43 °0 Pierson -2 4r�' =,, �,a�, -;, County -Wide Just Taxable County of Volusia -1 ���`., -1 _,? °a School Board South Daytona r�r'�' =,� - 4.77 °`0 Port Orange -1 15, °C Source: Volusia county Propert, : a �e c Coke West Volusia Cities Just Taxably Deland -2 ���9 °�4 -� 40 °�0 Deltona -��� r�go.� _�-� ,�,a��,o Lake Helen -�� 22 °'0 o Orange Cit�i - 2.53 °0 - 2.43 °0 Pierson -2 4r�' =,, �,a�, -;, County -Wide Just Taxable County of Volusia -1 ���`., -1 _,? °a School Board South Daytona r�r'�' =,� - 4.77 °`0 West Volusia Cities Just Taxably Deland -2 ���9 °�4 -� 40 °�0 Deltona -��� r�go.� _�-� ,�,a��,o Lake Helen -�� 22 °'0 o Orange Cit�i - 2.53 °0 - 2.43 °0 Pierson -2 4r�' =,, �,a�, -;, County -Wide Just Taxable County of Volusia -1 ���`., -1 _,? °a School Board -1 : �0` -1 2��` - City of Edgewater Tax Roll "Net Increase in Real Property Just Value" "Excluding New Construction" 30.00 - - 20.00 14.14 10.00 2003 2004 (10.00) (20.00) (30.00) 22.4. 14.99 34.01 9.78 2005 2006 2007 2008 i �01 (16.23) (16.69) (14.94) (17.92) W % of Net Change in Taxable... 1.70 1 1 2013 Volusia County, FL. Median Sales Prices - Single Family Residences (SFR) 1998-2011 2501000 l -. ___- - -- - ---- ---_---------- 1 2001 - 2006144°0 Increase 217,040 I 2006 - 201146'0 Decline 17% 199,900 200,000 - - -i - - - - 185 .000 ---------------- - - - - -E - 1 1 29% 172,000 19% a 150,000 143000 1996 - - 14, 142,000 - - - -� - N IDIOM 1390 � -175 122,600 116,400 C 490 4% 8% 101,040 — — — - — — _ �. _ t� ;Q 1000000 - sz o00 14° 75,500 78,500 I _5% I i 50,000 I I I - V 0 I 1 1 f - 1998 1999 2000 2001 2002 2003 2fite 4Rr 2006 2007 2008 2009 2010 2011 Source: Volusia Counts, Florida, Propery Appraiser's Office 2007 Property Tax on a Residential Home in Edgewater School Board $399.75 City of Edgewater (1) T,27q_R4 (25.800M Volusia County Q)r-,i o Other SE Volusia Hospital District $116.11 10.70% TOTAL TAX BILL Taxes St. Johns River Water Management District 22.26 2.05% $1,084.78 $153.39 Florida Inland Navigation District 1.85 .17% 14.14% East Volusia Mosquito Control 9.56 .88% Port Authority 3.61 .33% This graphic displays what a homeowner pays in ad valorem taxes on a homesteaded property in the City of Edgewater with an assessed value of $78,536 less a $25,000 Homestead Exemption taxable value of $53,536 (1) Operating Millage of $5.2 and $0.2710 for Voted Debt Service Millage 2012 Property Tax on a Residential Home in Edgewater School Board City of Edgewater (1) Volusia $ 314.39 County (42.42 %) $ 163.28 (21.96 %) $172.27 bon (23.24 %) molim JL 2012 TAX BILL Other SE Volusia Hospital District $ 82.50 11.13% $741.65 Taxes St. Johns River Water Management District 0.83 .11% 2007 - $1,084.78 $91.71 Florida Inland Navigation District 0.86 .12% Difference 12.38% East Volusia Mosquito Control 5.20 .70% ($343.13) Port Authority 2.32 .31% This graphic displays what a homeowner pays in ad valorem taxes on a homesteaded property in the City of Edgewater with an assessed value of $63,992 less a $50,000 Homestead Exemption. Taxable Value of $25,000 (1) Operating Millage of $6.47 and $0.06120 for Voted Debt Service Millage 2007 (Final) Total Tax Roll Breakdown - Taxable Value Edgewater Vacant Centrally Tangible Personal 12_� �¢.¢ Property Assessed 3.70, >.0 0.15�O —Agricultural a.OW "O Commercial 7.41% Governmental 0.01% Residential Industrial 322% In stitutio na I Nis cell an eo us 0.04% Tangible Personal Propei 6.34$: 2012 PRELIMINARY TAX ROLL TAXABLE VALUE BY PROPERTY CLASS EDGEWATER Agricultural n i s4:. Centrally Assessed 71 titutional 0.4044. Miscellaneous 0.0414 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Rolled Back Rate - vs.- Adopted 7 RS 2007 2008 2009 2010 2011 2012 2013 ■ Rolled Back Rate ■ Final Millage 350.00 300.00 250.00 200.00 150.00 50.00 City of Edgewater Property Taxes Per Capita $181.38 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Taxes per Capital 16,000,000 14,000,000 12,000,000 10,000,000 MOM .9 Pre I $$I 4,000,000 2,000,000 City of Edgewater Tax Analysis $14,356,423 $14,107,382 d o non cc-7 514.116 921 t'17 a52C "J/1A 2013- 2012- 2011- 2010- 2009- 2008- 2007- 2006- 2005- 2004- 2003- 6.47 6.47 6.59 6.36 5.90 5.20 5.70 6.45 6.45 6.95 6.95 kd Valorem ieneral Fund ludget 30 Years of History W, �. City of (ftgeWater Volusia County, Florida 321132 Post Orfice Box 100 DATE: JULY 29, 1981 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: CITY MANAGER SUBJECT: PROPOSED FY 1982 BUDGET I am pleased to present the proposed FY 1982 budget. This estimate of expenditures and revenues meets the agreement of each Department head, and includes all requests which can be afforded at this time. The significant points to note are: 1. A tax reduction of millage from 7.273 to 7.000 2. An annual road paving program of $140,000 3. An annual water/sewer line extension program of $210,000 4. An across-the-board raise of at least 10% for all employees S. Purchases of capital equipment (cars and trucks and other items) from the Federal Revenue Sharing budget, to include continued renovation of the Council chambers 6. Addition of one Detective, one motorcyclist, and one records clerk to the Police Budget--no other personnel increases It should be noted that the rate of growth Is h,ivi-ng a dramatic impact on the revenue structure, and will continue to do so. This permits the Council to fund services required by growth without. raising taxes. For example, the allowable limit in real estate taxation without special hearings was raised to 7.35 due to additional homestead exemptions, but because of the rate of growth we are able to recommend a reduction in millage to 7.000. 12 Miscellaneou Fines & Forfeitur( Intergovernmental Charges for Service 3 %— Sales & Use 35% General Fund Budget Breakdown FY2008 Licenses & Permits 2 %- Transfers In 1% Taxes 45% Cost A Debt Proceeds Licenses & Permits 1° Miscellaneous 19/( Fines & Forfeitur Intergovernmental 1% Charges for Service Sa General Fund Budget Breakdown FY2013 Unassigned 12% 30% Budgeted Revenue Outlook FY2013 • State Share increased $ 10,252 • County EMS decreased $160,000 • Ad Valorem increased $61,779 at $6.47 • Franchise Fees decreased $185,000 • Our use of unassigned reserves increased - $275,000 Budget Expenditure Outlook FY2013 • Compensation - Step Plan plus 2% • Health insurance and other benefits 3.8% Increase • City Pension Contributions increased $825,544 Budget Strategies Used For FY2013 • Continued to Evaluate Vacant Positions • Reduced Operating Budgets • Evaluated the need for Capital Outlay • Reassessed and Adjusted CIP Projects • Adjusted use of unassigned and designated reserves City Wide Debt Reduction General Fund • 2005 - $9,857,233 • 2006 - $878832985 • 2007 - $7,6187910 • 2008 - $6,070,152 • 2009 - $4,649,000 • 2010 - $3,141,380 • 2011 - $2,563,625 • 2012 - $ 11925,066 Enterprise Funds • $37,001,425 • $341625,837 • $31,720,482 • $28,841,268 • $25,958,775 • $23,7961360 • $2178371783 • $197122,471 Total Reduction $25,811,121 Reduction • $3,348,836 • $4,170,430 • $4,427,972 • $4,303,645 • $3,6707035 • $2,536,332 • $3,353,871 Current Budget Current Year Budget at 75% of Year General Fund Animal Services Water /Sewer Refuse Stormwater Revenues 65% 69% 69% 65% 58% Expenses 69% 71% 81% 77% 52% Still maintaining all budgeted capital outlay General Fund Capital •Menard Roof Replacement -Bush Hog *Multi purpose Vehicles (Gator) -Reel Mower -Replacement Phone System -Replacement Trucks -Replacement Police Vehicles *Total Capital FY2013 $ 7,000 $ 6,400 $ 18,798 $ 23,000 $ 5,800 $ 76,924 $ 87,437 225,359 Street Resurfacing •Sea Hawk Court -Finch Drive ,Rhode Island St. -Monroe Ave -Ocean Ave - RR to Flagler -Ocean Ave - West -Manholes, Valves 8v Contingency Total $31,192 $ 7,278 $23,538 X24,558 $ 7,370 $35,008 99 003 $137,947 General Construction Projects •Road Resurfacing •US 1 Median Improvements *Total FY2013 $ 137,947 $ 175,000 $ 312,947 Fund Reserves As Stated by 9 / 30 / 11 CAFR •$5,406,963 General Fund Reserves -Charter 16.52% $2,000,000 (Goal is 17 %) General Fund Unassigned / Designated •FY12 Budget $ 1,265,639 -Designated F. I. N. D . -$965,558 (used $347,129 - 100% covered) -Designated City Hall •$400,000