Fiscal Year 2023 Proposed Budget Workshop August 16, 2022 1
Budget Workshop Agenda 2 ❑ Overview of Budget Process and Environment ❑ Fiscal Year 2023 Strategic Plan ❑ Fiscal Year 2023 Proposed Budget ▪ Budget Priorities ▪ City-wide Budget Highlights ▪ Organization and Staffing ▪ Budget Highlights By Fund ▪ Water Resources Business Plan Update ❑ Public Comment ❑ Next Steps
Budget Workshop Format ❑ The City Manager will present an overview of the Budget Process, Budget Environment, Proposed Budget and Next Steps ❑ The Proposed Budget is a working document ❑ Senior Staff will be available to address specific questions 3
The City Manager is responsible for annually preparing and submitting a balanced budget to the City Council. – Section 30 (4) of City Charter 4
Vision Titusville is a growing and diverse community of hometown neighborhoods built among natural treasures, fostering civic pride, family activities, and community service. 5
Mission Statement Through teamwork and leadership, the City of Titusville provides essential services to improve the quality of life for our community. 6
City of Titusville FY 2023 Strategic Goals & Objectives Goal 1. Quality of Life Goal 2. Efficient & Effective Services ❖ Continue initiatives & actions to improve the Indian River Lagoon ❖ Commit to funding Capital Improvement Plan ❖ Enhance appearance of city, including entryways ❖ Explore opportunities for collaboration, ❖ Enhance youth educational, recreational and employment partnerships & coordination with public, opportunities private, and non-profit entities ❖ Enhance emergency preparations and management ❖ Develop a sustainability plan ❖ Sustain and improve public safety Goal 3. Financial Stability Goal 4. Economic Development Goal 5. Effective Governance ❖ Continue to execute strategies to ❖ Continue implementation of a comprehensive ❖ Expand methods to increase and enhance address long- term liabilities economic development plan in conjunction 2-way communications with appropriate agencies ❖ Plan for future obligations ❖ Continue the effectiveness of current ❖ Continue to market trails & amenities advisory boards ❖ Continue efforts to eliminate blight & revitalize ❖ Continue policy advocacy empty buildings ❖ Establishment of additional parking capacity downtown to meet current/future needs 7
Fiscal Year 2023 Budget Environment ❑ Property valuations continue to increase – 15.3% FY 2023 ❑ State Revenue estimates increase ❑ Building and Development activity continue to increase ❑ Operating and Personnel Costs increase ❑ Healthcare costs continue to steadily increase ❑ Significant OPEB liability ❑ Nearly $16.5 million in unfunded operating and capital needs 8
Fiscal Year 2023 Budget Priorities ❑ Continue the City-wide culture of continuous process improvement using Lean Six Sigma methodology and performance measurements ❑ Allocate resources to align with the Fiscal Year 2023 Strategic Goals as directed by the City Council ❑ Continue to pursue Economic Development opportunities through the prudent use of ad valorem, tax abatements and other economic incentives 9
Fiscal Year 2023 Budget Priorities ❑ Invest in our committed employee’s professional development by providing opportunities to participate in best practice training opportunities ❑ Continue to evaluate and adjust employee compensation, cost of living pay, and benefits to attract and retain a best in class quality workforce. Adjust to the City’s FY 2022 pay plan study and use a 5.4% cost of living adjustment for FY 2023 ❑ Maintain the General Fund emergency and stabilization reserves at current required levels 10
Fiscal Year 2023 Budget Priorities ❑ Using the 5-year plan, prepare FY 2023 operating budgets with a 8% increase in operating. For budget FY 2023 - FY2026 use a 10% increase in operating ❑ Focus operating budgets on near-and mid-term critical capital requirements, public safety enhancements, public outreach, and infrastructure improvements including roads, utilities, information technology, and public facilities ❑ Adjust current staffing levels where there is an identified critical shortfall 11
Fiscal Year 2023 Budget Priorities 12 ❑ Continue to examine the effectiveness of health insurance plans and policies to address rising costs and quality of care provided to our employees. ❑ Continue to address liabilities and debt by aggressively funding the Other Post-Employment Benefits (OPEB) trust fund ❑ Encourage managed growth using low impact development principles as a means of developing an attractive built- environment while protecting and conserving our natural resources
Fiscal Year 2023 Budget Priorities 13 ❑ Incorporate revenues from the American Rescue Plan Act to: ▪ Respond to the public health emergency and/or its lingering economic impacts, including an affordable rental housing program and food programs. ▪ Invest in Stormwater to improve drainage and improve the quality of water discharging into the Indian River Lagoon. ▪ Make necessary investment in water, sewer, and broadband infrastructure.
Fiscal Year 2023 Budget Highlights FY 2023 ALL FUNDS Proposed Budget $ 121,547,788 Baseline ALL FUNDS Budget (FY 2022 Adopted) $ 120,446,512 FY 2023 Proposed Budget Changes (0.9% Increase) $ 1,101,276 Proposed ALL FUNDS Budget $ 121,547,788 FY 2023 GENERAL FUND Proposed Budget $ 50,731,250 Baseline GENERAL FUND BUDGET (FY 2022 Adopted) $ 51,637,153 (905,903) FY 2023 Proposed Budget Changes (1.8% decrease) $ 50,731,250 Proposed GENERAL FUND Budget $ 14
Fiscal Year 2023 Budget Highlights ❑ City wide pay plan adjustments and a 5.4% cost of living pay adjustment ❑ Capital items necessary to address aging infrastructure and technology needs, which include: ▪ Continue investments in road resurfacing ▪ Replacement of essential vehicles and heavy equipment ▪ Computer/Software upgrades ▪ Stormwater System renewal and replacement ▪ Water and Wastewater System improvements ❑ 6.8 miles of road resurfacing ❑ 4% increase to city-paid and employee-paid healthcare premiums ❑ $1.6m of a $3.2m contribution to OPEB 15
$140,000,000 Fiscal Year 2023 ALL FUNDS $120,000,000 Proposed Revenues $100,000,000 $121,547,788 $80,000,000 All Other Funds Revenues $60,000,000 General Fund Revenues $40,000,000 Total Revenues $20,000,000 $0 16
Fiscal Year 2023 Proposed Budget All Funds Expenditures $121,547,788 16% 7% 8% 27% General Government 17% Public Safety 20% Public Works 4% Community Development Culture and Recreation 1% Water Resources Debt Service Capital 17
Organization & Staffing 18
Fiscal Year 2023 Proposed City-wide Organization Chart Citizens City Council City City Advisory Attorney Manager Boards Assistant City Attorney Executive City Clerk's Office Assistant Internal Auditor Law Enforcement Fire & Assistant City Community Water Public Code Enforcement Emergency Services Manager Development Resources Works Customer Service Development Services Utility Engineering Engineering Faclities Maintenance Finance Neighborhood Services Water Production Fleet Maintenance Human Planning Water & Sewer Streets Maintenance Resources Economic Development Field Operations Stormwater Utility Management Water Reclamation Information Building Solid Waste Technology Laboratory Services Recycling Purchasing Electronic Services & 19 Contracting Community Relations Marina F3 Marina, Inc.
Full Time Equivalents City of Titusville Total Staffing Levels 570.0 550.0 530.0 510.0 490.0 470.0 450.0 20
Fiscal Year 2023 Proposed FTE Changes Department FY FY Comments 2022 2023 Administration Public Works 18.5 18.5 No change Police 103.0 Add 1 Stormwater Equipment Operator Fire & Emergency 102.0 Community Development Building 157.0 160.0 Add 3 Police Officers 72.0 79.0 Add 6 Firefighters (1 Deputy Chief @ Mid-Year) Support Services 23.0 24.0 Add GIS Technician @ Mid-Year) 12.0 12.0 No change Water Resources 53.5 54.0 Add .5 Field Service Representative – Part Time Total Full-Time Equivalent 110.0 Add 1 Treatment Plant Operator, 1 Utility Supervisor, 1 Collection System Operator (2 Treatment Plant 115.0 Operators @ Mid-Year) 548.0 565.5 17.5 Proposed FTE Increase 21
General Fund 21
Fiscal Year 2023 General Fund Proposed Budgeted Revenues $50,731,250 Charges For Svcs Transfers In 13% 4% Misc. Revenue 8% Intergov't Revenue 18% Permits & Utility Taxes Property Taxes Fees… 17% 40% 23
$3,000,000,000 Property Tax Values $2,500,000,000 $2,000,000,000 Budget Year $1,500,000,000 $1,000,000,000 $500,000,000 $0 24
8.2000 Operating Millage Rate 8.0000 7.8000 Budget Year 7.6000 7.4000 7.2000 7.0000 6.8000 25
Ad Valorem Revenues $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- Fiscal Year 26
General Fund Millage Rate 27 ❑ This Proposed Budget was built at the current rate of $7.2145 mils. ❑ The approved tentative millage rate of $7.2145 mils is 13.48% change of the rolled-back rate and yields an additional $2.5 million in Ad Valorem revenue above the rolled-back millage rate. ❑ The purpose of the increase in Ad Valorem revenue will be to fund: ❑ Increases in the cost of fuel and other consumables due to inflationary pressure ❑ Increase in Public Safety staffing levels ❑ Incorporates a pay plan adjustment and a 5.4% COLA to recruit and retain City employees
Developments Since Publishing the 28 Proposed FY 2023 Budget Florida Chapter 74-430, House Bill No. 4173, limiting ad valorem revenue to 10% over the prior year’s ad valorem revenue for Brevard County local governments. Reduction from proposed ad valorem revenue - $880,713. Reduces required millage to 6.9812 mils which is a 10% increase over prior year ad valorem revenue. Implementation of half the FY 2022 pay plan study – with a 5.4% cost of living adjustment. Evaluate at mid-year available funds for the implementation of the second half of the FY 2022 pay plan study. If funds are not available at mid-year, will implement second half of FY 2022 play plan study as part of the FY 2024 budget.
Millage Comparisons 9.0000 8.0000 7.0000 6.0000 5.0000 4.0000 3.0000 2.0000 1.0000 0.0000 West Cape Melbourne Brevard Indian Indialantic Cocoa Cocoa Melbourne Titusville Palm Rockledge Satellite Bay Beach Melbourne Canaveral Beach County Harbour Beach 29 Beach
General Fund Revenues FY 2022 FY 2023 Change % Change Adopted Proposed @ 7.2145 mils $ 51,637,153 $ 50,731,250 $ (905,903) (1.8%) @ 6.9812 mils $ 51,637,153 $ 49,850,537 $ (1,786,616) (3.5%) Variances ❑ Ad Valorem – Tentative Proposed at current millage rate of $7.2145 mils ❑ Recommend adjusting the Proposed Ad Valorem down to $6.9812 mils 30 decreasing ad valorem revenues by $880,713 (10% increase over prior year ad valorem revenue) ❑ Utility & Franchise Fees – Increase in estimated water and solid waste taxes and fees ❑ Permits & Fees – Slight decrease in vacant property assessments ❑ Intergovernmental – Increase in state revenues across all accounts ❑ Charges for Services – Increase in General Fund administration fees due to rising costs for services
General Fund Revenues Variances cont. ❑ Prior Year Appropriations – Decrease due to use of less reserves ❑ Fines and Forfeitures – Decrease in code enforcement fines ❑ Miscellaneous – Increase in lease purchase proceeds tied to the financing of capital vehicles and equipment ❑ Transfers In – Increase in return on investment from the Water Utility based on projected revenues 31
FY 2023 General Fund Proposed Budgeted Expenditures $50,731,250 Debt Service 3% Capital Public Works 6% 9% General Gov't 12% Non-Departmental 19% Public Safety 47% Community Development 4% 32
General Fund Expenditures FY 2022 FY 2023 Change % Change Adopted Proposed Total $ 51,637,153 $ 50,731,250 $ (905,903) (1.8%) Variances ❑ Personnel – Increase is due to adjustments from the FY 2022 pay study, 5.4% COLA, 4% increase in group health care costs, $1 million in OPEB Trust Fund contribution ❑ Operating – Increase is due to costs associate with a 56% increase in fuel, a 28% increase in charges for IT services and a 98% increase in liability insurances ❑ Capital – The 33% overall increase is for public safety and Public 33 Works vehicles and equipment.
General Fund Expenditures Variances cont. ❑ Debt Service – Includes estimated debt payments for new equipment and vehicles ❑ Transfers Out – Increase in transfers for road resurfacing, General Construction (existing City Hall) and Building Fund ❑ Fund Balance – Overall decrease in the fund balance allocation 34
Special Revenue Funds Funds that are used to account for the proceeds of resources that are Restricted or Committed for purposes other than Debt Service or Capital Projects 35
Special Revenue Funds ❑ Forfeiture Fund - $30,000 to fund investigations ❑ Impact Fee Fund - $198,000 to support Public Safety 36
CRA Revenues ❑ CRA funds are to be used for activities in the Titusville CRA ▪ The total budget is $ 1,062,388 ▪ Funding Sources - $ 330,781 Brevard County $ 731,607 City of Titusville Balanced budget using no prior year appropriations 37
CRA Expenditures ❑ Personnel $ 161,999 ❑ Operating $ 244,079 ❑ Transfers $ 120,950 ❑ Capital $ 535,360 Capital Projects: ▪ Whiteway Replacement $ 56,360 ▪ CRA Building Grants $ 50,000 ▪ Road Resurfacing (.2 mile) $ 38,000 ▪ Spaceview Park Pier $ 300,000 ▪ Stormwater Infrastructure $ 91,000 38
Building Inspection Fund Tracks building inspection revenues and expenditures ❑ The total budget is $ 1,757,455 ❑ Funding Sources - $ 622,746 Permits and Fees $ 1,134,709 General Fund Transfer 39
Debt Service Funds Funds that are used to account for financial resources which are used for Principal and Interest payments. 40
Debt Service Funds ❑ G.O. Bonds 2005 – Voter-approved bonds to acquire riverfront property. The FY 2023 payment is $681,983. It is funded through an Ad Valorem rate of $0.2542 mils, which is more than 50% below the maximum levy of $0.5930 mils ❑ CRA –PIRN Series 2009 – Established to pay debt costs on the 2009 Bank Loan to the CRA. The CRA fund pays all debt costs, which are budgeted at $120,950 for FY 2023 ❑ Capital Improvement Revenue Series 2017 – Established to pay loan for Titus Landing Project. The North Brevard Economic Development Zone pays all debt costs, which are budgeted at $731,015 for FY 2023 41
Capital Project Funds Funds that are used to account for financial resources to be expended on capital outlays, including the acquisition or construction of capital facilities and other capital assets 42
General Construction Fund ❑ City Hall existing building - $323,000 ❑ Publix Works Complex - $223,778 43
Roads & Streets Fund Project Name New Project Allocations Road Resurfacing – 6.8miles* $1,042,000 Whiteway Replacement $299,000 Annual Sidewalk Repair $50,000 Total $1,391,000 * Breakdown of Total Funded Miles .2 from Titusville CRA 6.6 from General Fund 44
Road Resurfacing Program Miles of Roadways Paved 14 12 10 8 6 4 2 0 45
Enterprise Funds 46
Solid Waste Revenues FY 2022 FY 2023 Variance Adopted Proposed Total $ 6,771,770 $ 6,661,111 $ (110,659) Variances ❑ A proposed increase in charges for services ❑ Transfers from Stormwater ❑ Decreases in lease proceeds ❑ Prior year carry forward appropriations 47
Solid Waste Expenses FY 2022 FY 2023 Adopted Proposed Variance Total $ 6,771,770 $ 6,661,111 $ (110,659) 48 Expenses ❑ Increase is due to salary adjustments from FY 2022 pay study, 5.4% COLA, 4% increase in group health care costs, $108,951 in OPEB Trust Fund contribution ❑ Operating – Increase is due to a 79% increase in fuel costs, a 26.8% increase in liability insurance, along with slight increases in I.T. charges ❑ Capital - Slight change is due to request for additional vehicles and equipment ❑ Debt Service – Change is due to the paying down current debt service ❑ Fund Balance – Change is due to expenses exceeding revenues
Stormwater Revenues FY 2022 FY 2023 Adopted Proposed Variance Total $ 3,546,943 $ 3,300,543 $ (246,400) Variances ❑ Increase in customers and rates ❑ Decrease in lease proceeds for capital purchases ❑ Slight increase in liens research fees ❑ Decrease in prior year appropriations 49
Stormwater Expenses FY 2022 FY 2023 Variance Adopted Proposed Total $ 3,546,943 $ 3,300,543 $ (246,400) Variances 50 ❑ Personnel - Increase is due to salary adjustments from FY 2022 pay study, 5.4% COLA, 4% increase in group health care costs, $55,952 in OPEB Trust Fund contribution ❑ Operating – Increase is due to a 43% increase in fuel costs a 44.9% increase in liability insurance ❑ Debt Service – Change is due to a full year of debt payments for capital purchases in FY 2022. ❑ Capital - Change is due to fewer vehicle purchases ❑ Transfers Out – Change is due to more funding required for CIP Projects
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