A. Executive Summary

Transcription

1 A. Executive Summary Introduction Our Vision, Our Budget... A-1 Applying the Vision to the FY15 Budget... A-1 Key Strategic Initiatives for Developing the Budget...A-2 Key Long-term Strategic Initiatives... A-3 Local Economic Drivers... A-4 Adoption Process...A-6 Fiscal Year 2015 Adopted Budget... A-8 General Fund Overview... A-10 Personnel Overview... A-14 Enterprise Funds Overview... A-17 General Fund Subsidies or Advances... A-19 CIP Funds and Overview... A-20 Dependent Districts... A-23 Fund Structure and Fund Relationship... A-23 Basis of Accounting... A-25 At-a-Glance City of St. Petersburg, FL... A-27 Civic, Cultural & Recreational... A-29

2 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-1 Executive Summary Our Vision, Our Budget Fiscal Year 2015 Operating and Capital Improvement Program Executive Summary The fiscal year 2015 budget for the city of St. Petersburg does more than fund the operating and capital improvement budgets for our city it reflects our common values, incorporates our strategic pathways, and puts us one step closer to attaining our shared vision. Applying the Vision to the Fiscal Year 2015 Budget At the beginning of the fiscal year 2015 budget building process each department was asked to complete three exercises; 1) an inventory of services provided and the percentage of budget allocated to each function, 2) a review of performance measures and 3) a three to five-year forecast of their challenges and opportunities. The fiscal year 2015 budget reflects a city-wide effort to ensure that our funding priorities are aligned with our Vision. Departments were then asked to assign a value and strategic pathway from the city s Vision that applied to the services provided, the performance measures and the challenges or opportunities. During the month of March, each department met with the Administration and reviewed their fiscal year 2015 budget request. Departmental budgets were reviewed in the context of the above Vision, strategic pathway and values. Departments explained how the investment the city makes in each program or service advanced our collective Vision. Revisions and modifications were requested and implemented. Additionally, the FY15 budget process was transparent and inclusive reflecting input from members of City Council and the public at large. The section entitled Budget Adoption Process includes more details (see page A-6).

3 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-2 Fiscal Year 2015 Key Strategic Initiatives for Developing the Fiscal Year 2015 Budget Public Safety Maintaining service levels at the Police and Fire Departments is a top priority. Within the Fiscal Year 2015 General Fund budget, Public Safety represents 56% of the total investment or $ million. The Police Department budget includes investments in technology such as, updates to the communication center software, intrusion detection software and the deployment of additional cameras. The Fire Department budget includes an increase in overtime offset by the second year of a three year contract to provide fire protection services to the High Point Fire District. Neighborhoods The fiscal year 2015 budget includes the reestablishment of the Neighborhood Affairs Administration which includes the following departments: Housing; Community Services; Codes Compliance; and Veteran, Social & Homeless Services. The fiscal year 2015 budget includes a total investment of $6.207 million in the Neighborhood Affairs Administration. A few of the highlights of the commitment to neighborhoods can be found in the capital improvement budget. First, there is a new investment of $350,000 that can be used to address various housing issues such as the rehabilitation of vacant or boarded properties, the home buyer assistance program for teachers and police officers and owner occupied rehabilitation assistance. Secondly, the Neighborhood and Citywide Infrastructure Fund includes $175,000 in neighborhood enhancement grants to fund approved neighborhood plans. Additionally, three new codes compliance officers were added in fiscal year Planning & Economic Development Attracting and retaining good paying jobs to our city is an initiative for fiscal year 2015 as well as a long-term initiative. The fiscal year 2015 budget provides a total of $3.410 million for planning and economic development activities; new this year is an investment of $100,000 for business recruitment activities and $50,000 in small business retention. We continue our Greenhouse partnership with the St. Petersburg Chamber of Commerce with an investment of $92,000 and begin a new micro loan program funded at $25,000 to be administered by the Tampa Bay Black Business Incubator. Marketing Telling the story of who we are in a way that reflects our city s progress, sophistication and culture reinforces St. Petersburg as a top choice for residents, employers, employees and tourists. A strong marketing program complements our economic development efforts and boosts retention of businesses and residents. Among our many cultural priorities is a strong and vibrant arts community, which serves as an integral part of our marketing and economic development efforts. During the recessionary years much of the investment in the marketing of the city was reduced. The fiscal year 2015 budget includes a total investment of $2.801 million for marketing activities. General Wage Increase The fiscal year 2015 budget invests in our most important asset, the men and women who provide outstanding service to our residents. Resources are currently in the contingency line. The final amount to be invested will be subject to negotiation with the various collective bargaining units, but is generally expected to be an approximate 2% increase.

4 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-3 Executive Summary Key Long-Term Strategic Initiatives Invest in Reserves An investment of $1 million in our reserves is funded in the Fiscal Year 2015 Budget. This investment is included as a transfer to the Economic Stability Fund from the General Fund and will help to maintain strong reserves and our credit rating. As our economy continues to rebound we will maintain a focus on this priority, in keeping with our commitment to fiscal stewardship and responsibility. Invest Capital Dollars in Technology & Processes that Reduce Operating Costs During FY15, the city will continue to invest capital dollars to reduce future operating costs. Below are a few examples. Water Resources Southwest Reclamation Facility The infrastructure is nearly complete to begin transferring the wastewater flow from the Albert Whitted Water Reclamation Facility to the Southwest Water Reclamation Facility. As we begin that transfer and decommissioning of Albert Whitted, we will begin to realize the savings of operating three rather than four treatment facilities. We are continuing forward with the design of the biosolids treatment facility at the city s Southwest Water Reclamation Facility that will ultimately be the home of the city s waste-to-energy operation. The waste to-energy project will convert the bio-solids to compressed renewable natural gas, which will be used to produce electricity in order to fuel the city s compressed natural gas (CNG) fleet in the Sanitation department as well as possible resale opportunities. Water Resources Cosme Water Treatment Plant -- We are moving forward with permanent facilities to allow us to periodically bypass the plant. When the incoming water quality allows for it, the plant bypass will save operating costs with reduced electrical and chemical consumption at the plant. Athletic Field Lighting Improvements -- $500,000 is invested in the re-lamping and upgrading of various athletic field lights to be more energy efficient. Parks Lighting Improvements -- $125,000 is invested in the installation of enhanced security lighting including converting existing lighting to energy efficient lighting. We are also evaluating renewable electric systems where feasible as the technology advances. Sanitation In FY15, the Sanitation department will add six new CNG fueled trucks to its fleet of 24 (17 in operation and 7 soon to be delivered) as the city continues its efforts to convert the entire residential sanitation fleet from diesel to CNG. Adherence to Fiscal Policies Annually, as part of the budget adoption process, City Council reviews and reaffirms the city s fiscal policies. The city s fiscal policies are a comprehensive series of fiscal policies that embody recognized financial management concepts. The policies were initially adopted in 1980 and have provided guidance on many budgetary decisions since their adoption. These fiscal policies are intended to provide long-term fiscal stability for the city and outlast changes in administrations, City Council and city staff. The city s fiscal policies are found in section B of this document.

5 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-4 Fiscal Year 2015 The Local Economic Drivers There are several characteristics of the local economy that drive the city s fiscal year 2015 budget. This section will discuss several of them. Ad Valorem Revenues and Property Values For fiscal year 2015 the city will see gross taxable property value increase by 8.17% to $ billion from $ billion in fiscal year The increase in property values will generate an additional $6.525 million in ad valorem revenue from $ million in FY14 to $ million in FY15. Fiscal year 2015 is the second year in a row gross taxable property values increased. As illustrated in the charts below, for fiscal years the city experienced significant loss of ad valorem revenue due to the decline in property values associated with the great recession. It should be noted that the increase in ad valorem revenue in FY13 was associated with an increase in millage rate rather than an increase in underlying property values. In FY07 the city collected $ million in ad valorem revenue and in FY12 the city collected $ million for a net reduction of $ million from the pre-recession high to the trough of the recession. The FY15 ad valorem revenue is still $ million below the pre-recession high of FY07 relative to ad valorem revenue. 120,000 Ad Valorem Revenue (000s Omitted) 100,000 80,000 60,000 81,635 91, , ,840 94,914 83,109 74,923 69,616 78,561 81,737 88,262 40,000 20,000 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 The gross property value within the city continues to improve. In fact, the city of St. Petersburg s tax base has recovered more quickly than the twenty four (24) municipal governments within Pinellas County, including the unincorporated county. Much of the recovery in property values is attributed to the diversity of our tax base. For example, $1.067 billion or 7.86% of the city s taxable value comes from tangible personal property such as equipment owned by businesses. For comparison purposes, the city in Pinellas county with the next highest percentage from tangible personal property had 5.28% of its gross taxable value from tangible personal property. Additionally, for fiscal year 2015 the city of St Petersburg added $ in new property value to the tax rolls, a value greater than the amounts added in fiscal years 2014, 2013 and 2012 respectively.

6 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-5 Executive Summary 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, ,889,634 Gross Taxable Value (000s Omitted) 13,690,063 16,307,324 17,723,837 16,721,932 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 14,560,445 13,067,079 12,220,785 12,080,294 12,576,404 13,580,391 Permitting Activity Permitting activity is another indicator of the local economy. During the recently completed fiscal year 2014 a total of 23,754 building permits were issued with an estimated construction value of $ million. The 23,754 permits issued exceed the 22,607 issued in 2013 and is the highest level of permits and construction values since The tables below illustrate the number of permits issued and the annual permitted construction value from fiscal years 2007 through Annual Permits Issued ,754 22,607 19,463 17,376 15,894 13,007 15,627 20, ,000 10,000 15,000 20,000 25, Annual Construction Value (000s Omitted) $391,166 $402,323 $310,636 $201,694 $195,328 $248,016 $219,656 $635,400 $0 $200,000 $400,000 $600,000 $800,000

7 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-6 Fiscal Year 2015 Fiscal Year 2015 Budget Adoption Process The city s budget approval process is defined by state statute, the City Charter, and the City Code (ordinances). The process also contains additional non-mandated steps, designed to provide the City Council and the general public with opportunities for early input into budgetary decisions. Each year City Council approves both an operating budget and a capital improvement budget. The adopted capital improvement budget becomes the first year of a multi-year capital improvement program. Adoption Process The city s fiscal year begins October 1 and ends September 30, as specified by state law. Florida Statutes further require that budget appropriations occur each year and that each year s budget must be balanced. Additionally, there are very specific and detailed rules known collectively as the Truth in Millage or TRIM process as outlined in Florida Statute These rules dictate the approval process for the budget in general and property taxes in particular. TRIM sets the timetable for the County Property Appraiser to deliver estimated and certified tax rolls to the taxing authorities, including the city. It further requires that a tentative millage rate be approved by the city by a certain date, that the appraiser mail notices of proposed taxes (TRIM notices) to all property owners by a certain date, that two public hearings be held within certain specific time periods, and that the city run newspaper advertisements which follow exact specifications for wording, size, and placement prior to the final public hearing. The hearings themselves must be conducted according to a prescribed format and sequence of Council actions. This process includes the calculation and announcement of a theoretical rolled back millage rate (the rate which would generate the same property tax revenue in the current year as the prior year given the updated property valuation). The percentage change in property tax from the prior year resulting from the proposed millage rate must also be announced. Finally, the city must document its compliance with the TRIM rules and submit this documentation to the State for review and approval. The City Charter and City Code require that the Mayor submit a recommended budget to City Council by July 1, containing specific information as outlined in the code. The code also requires additional supplementary line item detail not contained in the recommended document, but provided to Council in a separate volume by July 1. Additionally, two days prior to the second public hearing, state statues require the city to post the tentative budget on-line for citizen access. Following the adoption of the budget, state statues require that the adopted budget be posted on-line within 30 days. Other major planning processes that impact the budget include the comprehensive plan, required by state statute to define infrastructure requirements and levels of service. The comprehensive plan includes a capital improvements element, which is updated in conjunction with the capital improvement program and budget. The city is required to make an annual report on budget compliance with the capital improvement element of the comprehensive plan. Beyond the requirements of state statute and the City Charter, the city adopted a series of fiscal policies that provide guidance in developing the annual budget. A discussion of these policies, which cover such areas as revenue forecasting, fund balances, and the issuance of debt, is included in a later section of this document. A series of workshops were held with City Council throughout the year to discuss the economic, financial, and programmatic issues pertinent to the budget development process. The mayor also held three budget summits in the community where the public was invited to give city officials input prior to the release of the Mayor s Recommended Budget on July 1. A schedule of the budget process follows:

8 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-7 Executive Summary Fiscal Year 2015 Budget Adoption Timeline: Feb. 7 Apr. 23 May 7 May 14 May 14 Operating Budget Kickoff Budget Staff & Departments Mayor's Budget Summit City Council, Mayor & Budget Staff Walter Fuller Recreation Center CIP Budget Workshop with Council City Council, Mayor, Budget Staff & Administrators City Hall Operating Budget Workshop with Council City Council, Mayor, Budget Staff & Administrators City Hall Mayor's Budget Summit City Council, Mayor & Budget Staff Wildwood Recreation Center June 2 June 18 Estimate due from Property Appraiser County Property Appraiser Mayor's Budget Summit City Council & Mayor Willis S. Johns RecreationCenter July 1 July 24 Receive Certified Taxable Values County Property Appraiser Set proposed millage rate for TRIM notice, date, time, and place of first Public Hearing, and reaffirm fiscal policies City Council & Mayor Sept. 4 Sept. 18 Public Hearing. Adopt tentative budget and tax rate. City Council & Mayor Public Hearing- Adopt final budget and tax rate. Approve the capital improvement program. City Council & Mayor

9 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-8 Fiscal Year 2015 FISCAL YEAR 2015 ADOPTED BUDGET The operating budget for the city of St. Petersburg for fiscal year 2015 totals $ million for all funds, excluding internal service funds and dependent districts. This is an increase of $9.876 million or 2.09% from the fiscal year 2014 Adopted Budget. The estimate included herein was used by City Council to set the millage rate as required by Florida Statutes. In addition, the fiscal year 2015 capital improvement program budget totals $ million. The city s budget is comprised of a number of different funds which are set up to accomplish different functions. This allows for segregation and tracking of the full cost of different city operations and programs. The following table shows the dollar amount budgeted for each operating fund: FY 15 Operating Budget Summary General Fund & Reserves $216,312,156 Water Resources $114,150,009 Non-Operating/Debt $43,705,207 Sanitation $41,930,392 Other Operating Funds $55,335,364 Stormwater $11,921,351 Total $483,354,479 Operating Budget Expenditures As indicated in the charts to follow, the General Fund, which is the fund that receives ad valorem and other tax revenues and includes traditional government services such as police, fire, and parks and recreation, makes up 45% of the total budget. The three largest enterprise funds, funded by fees paid by users of the services are: Water Resources, Stormwater Utility, and Sanitation, they make up an additional 35%. The remainder is attributable to other operating, special revenue and debt service funds. Other Operating Funds, 11% FY15 Operating Budget $ Million Sanitation, 9% Stormwater, 2% Water Resources, 24% General Fund & Reserves, 45% Non-Operating, Special Revenue & Debt Funds, 9%

10 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-9 Executive Summary Operating Budget Revenue Revenues funding the operation of the government come from various sources, as illustrated below. The single largest source of revenue comes from user fees at 44% of the total operating budget. The majority of the city s user fee revenue is generated by the city s enterprise systems such as Water Resources (water, wastewater and reclaimed water services), Sanitation and Stormwater. The second largest source of revenues is taxes at 31% of the total revenue. Included in the taxes category is ad valorem (property taxes), as well as other taxes such as utility taxes and franchise taxes. FY15 Operating Revenues Sources All Funds $ Million Intergovernmental, 8.41% Other, 2.82% Transfers, 8.43% PILOT/G&A, 5.35% Taxes, 31.06% Users Fees, 43.93%

11 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-10 Fiscal Year 2015 General Fund Revenue General Fund Revenues: The General Fund is the operating fund for general government operations including Police, Fire, Parks and Recreation, Codes, etc. The fiscal year 2015 budget includes a total of $ million in General Fund revenue which is a 1.82% increase over the fiscal year 2014 budgeted revenues of $ million. The General Fund is the only fund supported by ad valorem tax revenue. Ad valorem tax revenue of $ million or 41% of the total, represents the largest single source of General Fund revenue. Other taxes, including Utility Taxes (electricity, water, sewer, etc.), Franchise Tax (electricity and gas), Communications Services Tax, and Business Tax, account for a total of $ million or 27% of the total revenues. Intergovernmental revenue including federal, state and local grants, and State Shared Revenues which includes the half-cent sales tax is the third largest source at $ million or 12%. General Administrative charges (G&A) and Payment in Lieu of Taxes (PILOT) represent 12% of the total General Fund revenue or $ million. The G&A charges are assessed on each enterprise fund and three internal service funds and represent the pro-rata share of city-wide management and control functions such as accounting, personnel and purchasing. The PILOT payments are charges to enterprise funds which are intended to replace General Fund revenues (ad valorem tax revenue) which the city would receive if the enterprise were a private sector operation. FY15 General Fund Revenues $ Million Interest/Misc, 0.65% or $1.402 M Transfers, 0.74% or $1.603 M Fines & Forfeitures, 1.35% or $2.913M Charges for Services, 5.06% or $ M G&A/PILOT, 11.78% or $ M Ad Valorem Taxes, 40.92% or $ M Intergovernmental, 12.05% or $ M Other Taxes, 27.45% or $ M Overall, General Fund revenues are forecasted conservatively as required by city fiscal policy and are expected to increase 1.82 % from FY14. The increase in revenue is due to the increase in ad valorem tax revenues and is partially offset by a budgeted decrease in revenue from Communications Services Tax and franchise fees on electricity. Ad valorem taxes have been the primary revenue driver in prior years and are based on the certified tax assessment received from the Pinellas County Property Appraiser which showed an 8.17% increase in assessed value from the FY14 final certified value. The increase is due to the firming up of the real estate market locally.

12 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-11 Executive Summary Over the last several years the city s share of the Communication Services Tax has been declining. In FY15 the city budgeted $ million which is a 6.96% decrease as compared to the $11.5 million in FY14. The franchise fee on electricity is a fee of 6% levied on a business s (Duke Energy) gross receipts for the sale of electricity within the city. This fee is to compensate the city for the use of its rights-of-way. The FY15 projected revenue is based on historical receipts and information received from Duke Energy. For FY15 the city is budgeting $18.4 million which is a 5.93% decrease as compared to the FY14 budget of $ million. In FY15, the city budgeted $ million in utility tax on electricity, which is an increase of 6.64% as compared to the FY14 budget of $ million. The increase can be attributed to an electric utility rate increase of 7.95% that Duke Energy applied for and that was approved by the State of Florida Public Service Commission. The new rate went into effect in January of Projected state shared half-cent sales tax revenue is budgeted at $14.8 million, which is an increase from the $ million budgeted in FY14. In 2010, the state-wide sales tax receipts were at record lows and the city s share of those revenues was $ million. Beginning in FY11, the city has seen consistent gains in the annual half-cent sales tax receipts. Local option gas tax revenue is based on a county distribution formula. FY15 gas tax revenues are projected to come in slightly higher at $3.285 million as compared to $3.275 million in FY14. NOTES: There is a line item on each of the administration and department pages in the Revenue Sources section that shows the amount of the fund balance added to or used for each department. This will be identified in the revenue source section by the name of the fund. For example, in the Public Safety summary for FY15 it shows an amount of $117,095,956 for the General Fund. This is the amount of the General Fund that goes to support this function. In some funds the number will be a negative, which indicates the amount that is contributed to the fund balance of the General Fund as a result of budgeted revenues exceeding budgeted expenditures. In previous years, interest earnings included unrealized gain or loss. In order to follow correct accounting procedures, unrealized gain or loss has been removed from the revenue calculations in this book, causing some previous years actuals to differ from what has been published in the past.

13 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-12 Fiscal Year 2015 General Fund Expenses by Type Looking at the General Fund by type of expense one can see that the single largest investment is in personnel at $ million or 70.57% of the total General Fund expenses. Operating expenses, which includes the General Fund cost for services and commodities, make up an additional $ million or 21.07% of the total General Fund expenses. Transfers/Debt, 6.76% or $ M General Fund Expenses by Type $ Million Capital Outlay/Social Services, 1.6% or $3.456 M Operating Expense, 21.07% or $ M Personnel, 70.57% or $ M

14 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-13 Executive Summary General Fund Expense by Administration The General Fund is organized into six administrations. The largest investment in the General Fund is in public safety, which includes the Police and Fire Departments. The total investment in Public Safety in FY15 is $ million and represents 56.6% of total General Fund budgeted expenditures. Additionally, fiscal policies state that ad valorem revenues will be dedicated to support the Police Department and in FY15 ad valorem revenues cover 97% of that appropriation of $ million. The Leisure Services Administration, which includes the quality of life type services provided by the city s Parks and Recreation Department and libraries, is the second largest investment at $ million or 17.99% of the total General Fund. FY15 General Fund Expense By Administration $ Million General Government, 14.5% or $31.359M Neighborhood Affairs, 2.87% or $6.208M Leisure Services, % or $ M Public Safety, 56.6% or $ M Public Works, 5.15% or $11.145M City Development, 2.89% or $6.259M Enterprise Funds The fiscal year 2015 budget does not include an increase in rates for the Sanitation or Stormwater Departments. The fiscal year 2015 budget includes an increase of 4.75% on water, sewer and reclaimed water charges as outlined in the fiscal year 2014 rate study.

15 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-14 Fiscal Year 2015 PERSONNEL OVERVIEW Salaries and benefits make up 50% of the total operating budget and 71% of the General Fund budget. These costs tend to increase at a higher rate than other operating costs. The city s goal is to manage the growth of positions to the greatest extent possible through the use of technology improvements, reorganizations and other efficiency enhancements. Although the city added seventeen full-time and twenty-seven part-time positions, supported by a recovering economy, the city s workforce has decreased 1.2% as compared to FY11 while still meeting the demands of the city. Salary and Benefits Costs In FY15, health insurance costs decreased 0.6% compared to the FY14 budget. Of the $ million budgeted for salaries and benefits, employee health insurance costs are $ million. Pension costs are determined by an independent actuarial study. One part of the analysis provided by the actuarial study includes projection of earnings on the assets of the individual pension funds using a four-year averaging methodology. In FY15, general employee pension costs decreased by 4.37% over the FY14 adopted budget from $ million to $ million and public safety pension costs decreased 9.88% over the FY14 adopted budget from $ million to $ million; these changes were based on the actuarial study. As shown in the chart below, salary & benefits costs are projected to decrease by $2.726 million or 1.1% since FY ,000 Salary and Benefits Actual Costs (000s omitted) 244, , , , , , , , , , , ,175 FY10 FY11 FY12 FY13 FY14 Est. Budget FY15 Step increases in the contracts with public safety union employees are included in the FY15 budget. The FY15 budget also includes a modest overall 2% wage increase for all FPSU represented employees, professionals and managerial employees.

16 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-15 Executive Summary Full-Time Employee History A net increase of 17 full-time positions is included in the FY15 budget as compared to FY14 budget. Ten total positions were added in the Mayor s Office, three positions were added in the Code Compliance Department, four positions were added in the Parks and Recreation Department, one position was added in the Marketing Department and one position was added in the Billing and Collections Department. The Golf Course eliminated two total positions resulting in the net 17 full-time position increase. More details of the personnel changes can be found on the individual department pages. 2,800 Full-Time Employees Five Year History FY11-15 Adopted Budget 2,733 2,700 2,693 2,679 2,681 2,698 2,600 FY11 FY12 FY13 FY14 FY15 Budgeted Additionally, in FY15, the mayor re-established the Neighborhood Affairs Administration subsequently reorganizing the Codes Compliance, Housing, and Community Services Departments into this Administration. Also included within this reorganization was the movement of the Neighborhood Team (N-Team) to Neighborhood Affairs. Six full-time positions were transferred into this new division in Neighborhood Affairs from the Codes Department.

17 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-16 Fiscal Year 2015 Full-Time Staffing by Administration The table below provides a breakdown of the full-time staffing by Administration. Public Safety, made up of the Police and Fire Departments, accounts for 40% of the city s total staffing. The Police Department has a total fulltime equivalent (FTE) of of which 73% or 550 FTE are the men and women providing police protection to our community. The Fire Department has a total FTE of and 307 or 92% are the uniform men and women providing emergency medical services and fire protection services to the city. FY15 Staffing Breakdown by Administration Neighborhood Affairs Administration, 3% City Development Administration 6% General Government Administration, 10% Public Works Administration, 28% Leisure Services Administration 13% Public Safety, 40%

18 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-17 Executive Summary ENTERPRISE FUNDS OVERVIEW Enterprise Operations: Enterprise operations provide services that are of benefit to specific individuals and therefore charge a fee to the individuals who receive the service. The operations below seldom receive any direct general government support and are expected to cover all costs including capital costs and any debt. The amounts shown in the chart below are for the enterprise operating funds only and do not include any associated reserve funds. In FY10, a number of operating special revenue funds were reclassified as enterprise funds due to recommendations made in GASB 54. The funds reclassified were the Parking Special Revenue Fund, Mahaffey Theater, Pier, Coliseum, Sunken Gardens, and Tropicana Field Operating Fund. Enterprise Funds History (000s Omitted) Actual Actual Actual Estimate Adopted Water Resources $ 100,320 $ 105,197 $ 119,521 $ 111,471 $ 114,150 Stormwater Utility $ 10,693 $ 11,408 $ 13,198 $ 11,897 $ 11,921 Sanitation $ 40,235 $ 39,637 $ 42,046 $ 42,681 $ 41,930 Others $ 29,141 $ 27,469 $ 29,607 $ 31,690 $ 28,185 Enterprise Fund Expense History $ Millions $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Water Resources Stormwater Utility Sanitation Others Water Resources: Based on a rate study completed in FY14, water, sewer and reclaimed water rates will increase by 4.75% in FY15. In FY15, $1.215 million will be transferred to the Water Resources Operating Fund from the Water Cost Stabilization Fund (WCS Fund) to partially offset the cost of raw water from Tampa Bay Water. The WCS Fund was initially funded by the sale of well fields to Tampa Bay Water. Investment earnings on proceeds from this sale are transferred annually to help offset the cost of water. The Water Resources Operating Fund will transfer $ million to the General Fund for payment in lieu of taxes in FY15. The transfer to Water Resources CIP is $4 million in FY15 Stormwater: No rate increase is included in the FY15 budget. The transfer to the Stormwater CIP is $800,000 in FY15.

19 FY15 Adopted Fiscal Plan City of St. Petersburg The Stormwater Utility Operating Fund will transfer $2.087 million to the General Fund for payment in lieu of taxes in FY15. Sanitation: No rate increase is included in the FY15 budget. A transfer of $2.7 million will be made to the Sanitation Equipment Replacement Fund in FY15. The Sanitation Fund will transfer $380,076 for return on investment and $2.523 million for payment in lieu of taxes to the General Fund. Airport: In FY15, the Airport Fund will transfer $220,400 to the General Fund for repayment of its loan outstanding in the principal amount of $1,733,273 as of the end of FY14. Marina: No rate increase is included in the FY15 budget. The transfer to the Marina Capital Projects Fund is $80,000 in FY15. In FY15, the Marina Fund will transfer $310,000 for return on investment and $124,320 for payment in lieu of taxes to the General Fund. Golf Course: No rate increase is included in the FY15 budget. Twin Brooks (one of two par three golf courses) will be closed while $1.464 million in renovations are completed. The Golf Course Fund will transfer $58,272 to the General Fund for payment in lieu of taxes in FY15. Jamestown: No rent increase is included in the FY15 budget. Renovations to the rental units are underway with the expected completion during FY16. Port: Since FY12, the Port does not transfer funds to the General Fund for payment in lieu of taxes because it is subsidized. Parking: The Parking Fund will transfer $350,000 for return on investment and $97,836 for payment in lieu of taxes to the General Fund in FY15. Executive Summary A-18 Fiscal Year 2015

20 City of St. Petersburg FY15 Adopted Fiscal Plan GENERAL FUND SUBSIDIES OR ADVANCES In general, enterprise fund operations generate revenue which is expected to cover the cost of the operation plus any capital needs and debt service. However, some enterprise funds are deemed to have public benefit in addition to the specific benefits to the users and, as such, are provided a subsidy from the General Fund to cover any shortfalls between the cost of operation and the revenue generated. The chart that follows shows the historical and budgeted amounts of the subsidy for each of these operations. Thousands 1,600 1,400 1,200 1, Airport Port Mahaffey Subsidy History Tropicana Field Notes: For the Airport, Golf Courses and Jamestown any support from the General Fund is in the form of an advance or loan and the enterprise is expected to make repayment. Airport In FY15, there is a budgeted repayment from the Airport to the General Fund of $220,400. No loan was needed in the recently concluded FY14. The total amount owed by the Airport to the General Fund is $1,833,273 ($823,679 operating support plus $1,009,594 debt payment). Taking into consideration the repayments made in FY11, FY12 and FY14, the outstanding balance due to the General Fund from the Airport at the end of FY14 is estimated to be $1,663,063. Jamestown Housing Complex This is a city owned complex that provides affordable apartment units to low and moderate income families. Jamestown has received loans or advances from the General Fund in the following amounts: $70,000 in FY10, $188,000 in FY12, $94,000 in FY13 and $123,000 in FY14. It paid back $35,000 in FY11, so the balance due at the end of FY14 is $440,000. Jamestown is undergoing renovations so the occupancy rate will be down during most of FY15 thus reducing its revenues; therefore the FY15 budget includes an additional loan or advance in the amount of $60,000. Additionally, in FY15 the requirement of Jamestown to pay PILOT and G&A was eliminated. Golf Courses The city owns three golf courses, one championship course (Mangrove Bay) and two par three facilities (Twin Brooks and Cypress Links). During fiscal year 2015 Twin Brooks will be off line for approximately nine months while $1.464 million in improvements are made. Steps have been taken to reduce the expense side of the Golf Course budget to account for the reduced revenues thus a loan is not budgeted in fiscal year The Golf Course did receive $27,000 in FY12, $175,000 in FY13 and $166,000 from the General Fund in FY14. This amount, totaling $368,000 is considered a loan and will be repaid from future Golf revenues. Pier Sunken Gardens Coliseum Jamestown Golf ,016 1,480 1, ,471 1, ,387 1, , , Fiscal Year 2015 A-19 Executive Summary

21 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-20 Fiscal Year 2015 Capital Improvement Program The fiscal year 2015 adopted capital improvement program (CIP) is $ million and the five-year CIP plan covering FY15 FY19 provides for an estimated $ million in additional capital improvements. The CIP section of this book includes a complete listing of the proposed capital projects to be implemented during fiscal year 2015, including project descriptions for each project. There are fund summaries for each capital improvement fund and each summary provides a five-year look into the future. The capital expenditures for fiscal year 2015 in the Water Resources Department are projected to be $ million or 54% of the total FY15 CIP, while the Penny for Pinellas projects account for $ or 30% of the total FY15 CIP. The five year CIP totals $ million. All funds are balanced in all years. Water Resources projects comprise more than 59% of the five year CIP. As indicated in the chart that follows, the FY16 CIP is significantly higher than other years as it includes the final demolition of the Albert Whitted Reclamation Facility and the construction of the waste-to-energy project at the Southwest Water Reclamation Facility CAPITAL IMPROVEMENTS PROGRAM 5 YEAR PLAN- $ M (000s omitted) $9, $10,906 $37,144 $71,120 $7,597 $37,708 $7,006 $6,565 $23,780 $28, $20,314 $17,787 $17,179 $20,911 $20,698 FY15 FY16 FY17 FY18 FY19 Penny Funds * Water Resources Other Funds *The Biosolids to Energy project is scheduled to begin construction in FY16 in the Water Resources Fund. Most of the project is expected to be funded with a low-interest State Revolving Fund Loan issued by the Florida Department of Environmental Protection.

22 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-21 Executive Summary The first year of the CIP is appropriated by City Council as the FY15 capital projects budget and is $ million for all funds in FY15. The budget is shown by fund in the chart and table that follow. As indicated, 84% of the budget is comprised of Water Resources projects and projects funded from the Penny for Pinellas. The remaining portion is comprised of a number of funds as shown in the smaller circle. Penny for Pinellas, Water Resources, and Other CIP Funds Water Resources 54% Other 16% Airport, Marina, Golf Course, Port, Parking & Tropicana 5% Break Down of Other CIP Funds Trans Impact Fees, Bicycle & Weeki Wachee 5% Penny Funds 30% Stormwater 3% Housing & General CIP 3% CIP FUNDS FY15 (000s Omitted) Public Safety 516 Stormwater 1,679 Neighborhood & Citywide 12,409 Airport 2,718 Recreation & Culture 6,589 Marina 500 City Facilities 800 Golf 0 Housing 375 Port 0 General CIP 1,656 Bicycle/Pedestrian 1,353 Tropicana Field 0 Weeki Wachee 0 Downtown Parking 500 Transportation 2,125 Water Resources 37,144 Grand Total 68,364 Funding for enterprise fund (Water, Stormwater, Airport, Marina, Golf Courses, Port, Parking, and Tropicana Field) CIP projects comes from operating fund transfers on a pay-as-you-go basis, as well as, from debt or grant funding. Although enterprise funds are expected to fully fund all aspects of their operations, penny funds are programmed for some Stormwater projects, as well as, for grant matching funds for Airport and Port projects. Funding for other non-general government projects (Bicycle/Pedestrian, Weeki Wachee, Transportation, and Housing) comes from grants and various special revenue funds. The majority of projects in the General CIP Fund are funded by grants, but a portion of funding is provided by transfers from other funds including the General Fund. In FY15, there is planned a transfer of $1,000,000 from the General Fund to the General CIP Fund to be used for future projects that have yet to be determined. The Housing CIP Fund will also receive a transfer from the General Fund in the amount of $350,000 which will provide resources to address the quality of housing stock city-wide with a focus on south St Petersburg. The primary revenue source for general government projects, such as streets, roadways and parks, is the Local Option Sales Surtax, which is commonly known as the Penny for Pinellas. On March 13, 2007, voters approved a ten year renewal of the Penny for Pinellas sales tax beginning in January 2010 when the previous penny sales tax expired. In prior years, revenue provided by the Penny has allowed the city to fund a majority of the general government capital improvement program, and the extension of the tax is very important to the city s ability to continue to fund needed capital improvements going forward. Over the ten-year extension, proceeds of the tax are expected to be approximately $ million. The following provides key provisions of the tax:

23 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-22 Fiscal Year 2015 The basis for the Penny for Pinellas is rooted in state law. With voter approval, the state legislature authorized counties to levy a sales surtax for infrastructure. The tax has been approved by voters three times beginning in Although Pinellas county has chosen to implement the tax on a ten year time basis, the law allows the tax to be levied for up to 15 years. The tax cannot exceed one cent. In Pinellas county, the Penny for Pinellas is the seventh cent of sales tax. Pinellas county shares that one cent with all municipalities in the county according to an inter-local agreement that specifies distribution on a population-based formula after removal of a specified amount for county criminal justice projects. St. Petersburg s annual share of approximately 18% of the balance has averaged approximately $22.7 million for the past 14 years. In FY15, penny projects total $ million and for the FY15 FY19 period total $ million. These numbers do not include an assignment of $48.1 million for a new police facility/emergency operation center in the five-year CIP. The penny plan approved by the voters provides for projects in four priority areas and established funding goals for each of these areas. The following charts show the appropriations for each of the four areas (not including the assignment mentioned above) in FY15 and for the five-year CIP. 30,000 FY15-FY19 CIP Penny Plan (000's omitted) 25,000 20,000 15,000 10,000 5,000 0 FY 15 FY 16 FY 17 FY 18 FY 19 Public Safety Capital Improvement Recreation/Culture Capital Improvements Neighborhood/Citywide Infrastructure City Facilities Capital Improvements

24 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-23 Executive Summary Dependent Districts The city is required to budget for its dependent districts including the Downtown Redevelopment District, Bayboro Harbor Tax Increment District, Intown West Tax Increment District, and the Health Facilities Authority (HFA). The City Council serves as the board for the Downtown Redevelopment District and the other tax increment districts. The Downtown Redevelopment District receives the city and county shares of the downtown tax increment revenue as well as interest earnings which are projected to be $9,919,832 in FY15, a portion of which will pay debt service on public improvement bond issues. The Bayboro and Intown West Tax Increment Districts are projected to receive city and county contributions and interest earnings of $48,228 and $761,793 respectively. All three tax increment districts recognized an increase in the property values as compared to FY14. The revenue from these special districts is used for improvements within the tax increment district. The Health Facilities Authority issues bonds for health care facilities, and annually includes a budget of $14,000 for minor expenses. Fund Structure The city of St. Petersburg uses funds and account groups to manage and report revenues, expenditures, and expenses as required by the City Charter, state statutes, and generally accepted accounting principles (GAAP). Each of the city funds is a financial/accounting entity, and in a sense, a legal entity. Each fund has its own fund balance, which is accounted for separately. The target fund balance amount for each fund is stated in the city s fiscal policies. The following are the various fund categories the city uses: GOVERNMENTAL FUNDS are designed to focus on near-term liquidity. Consequently, governmental funds do not present fixed assets, long-term receivables, or long-term liabilities. Governmental Funds typically are used to account for activities supported by taxes, grants, and similar resources. There are four types of Governmental Funds: General Fund, Special Revenue Funds, Capital Improvement Funds and Debt Service Funds. PROPRIETARY FUNDS are used to account for the delivery of services similar to those found in the private sector. The services can be provided to outside parties for a profit, or internally to other departments for payment based on cost. There are two types of Proprietary Funds: Enterprise and Internal Service Funds. FIDUCIARY FUNDS are used to account for assets held on behalf of outside parties or other funds. There are four types of Fiduciary Funds: Pension Plans and Agency Funds, Non-Expendable Trust Funds and Expendable Donation Funds.

25 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-24 Fiscal Year 2015 The city s FY15 operating budget is $ million. The chart below illustrates the fund structure of the city s appropriated funds.

26 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-25 Executive Summary Fund Relationship The chart that follows illustrates the interrelationship between funds. Dollars are transferred between funds for various purposes. For example, both the General Fund and the enterprise funds transfer dollars to CIP funds for pay-as-you-go projects (as shown by the solid line in the table). Also, certain enterprise funds transfer dollars to the General Fund in the form of payments in lieu of taxes (PILOT) and general and administrative charges. Additionally, the General Fund provides support in the form of subsidy or loans to several enterprise funds (as shown by a dotted line in the table). Finally, the General Fund, enterprise funds and special revenue funds pay internal service funds for city provided services (as shown by the dashed lines in the table). Although each fund is a distinct entity, all funds contribute to the overall operation of the city. Basis of Accounting Modified Accrual The modified accrual basis of accounting is used for financial reporting purposes in the governmental funds. Under this basis, revenues are recognized when they become susceptible to accrual; i.e., when they become both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are generally recognized under the modified accrual basis of accounting in the period that the liability is incurred. The exception to this general rule is that expenditures for principal and interest on general long-term debt are recognized when due and expenditures for compensated absences are recorded when paid. Accrual The accrual basis of accounting is used for financial reporting purposes in the Proprietary and Fiduciary Funds. Under this basis, revenues are recognized in the period earned and expenses are recognized in the period that the liability is incurred. In contrast to Governmental Funds, depreciation is recorded.

27 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-26 Fiscal Year 2015 Budgetary Control and Amendments The General Fund is subject to budgetary control on a combination of fund and administration levels (e.g., Leisure and Community Services Administration includes the Parks and Recreation and Library Departments within the General Fund). The mayor is authorized to transfer General Fund budgeted amounts between expenditure category within individual departments and administrations according to the original appropriation ordinance. The City Council approves supplemental appropriations and appropriation transfers between administrations by resolution during the fiscal year. These transactions are then approved at fiscal year-end by ordinance. Major capital facilities and improvements, which are accounted for by the city within the capital projects funds are subject to budgetary control on a project and fund basis. Appropriations for a specific project do not lapse until completion of the project. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration. Encumbrances outstanding at fiscal year-end are carried forward and re-appropriated in the following year. Budget Basis of Accounting Budgets presented for governmental funds have been prepared on the modified accrual basis of accounting, except for encumbrances and the net increase (decrease) in the fair value of investments. Encumbrances are part of the overall budgetary control process and thus are included in the actual column with the related expenditures when a comparison with budget is made. Similarly, the net increase (decrease) in the fair value of investments is excluded from related revenues when a comparison with budget is made. Depreciation is not included in budgetary statements since it is not a use of expendable resources. For management decision and control purposes, enterprise debt service, capital project funds, and some reserve accounts, are budgeted separately, whereas in the financial statements, these funds are combined with the corresponding operating fund.

28 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-27 Executive Summary At a Glance - City of St. Petersburg, Florida The city of St. Petersburg was incorporated as a town in 1892 and later in 1903 as a city. It is located on the Pinellas peninsula, on the central west coast of Florida bordered by Tampa Bay on the east, the Gulf of Mexico on the west, and Boca Ciega Bay to the south. It has a land mass of 60.9 square miles with the highest elevation above sea level of 61 feet. It is the fifth largest city in Florida and the 78 th largest city in the United States. The city had a 2013 population of 249,704. The city is governed by a strong mayor/council form of government; a system that combines the strong political leadership of a mayor with an elected City Council. The mayor is responsible for running the daily affairs of the city. The City Council has a chair and a vice chair and must approve city policies, city budget, and the mayor s choices for city attorney, city administrator, and city clerk. (Map Source: Economic Development Division, City of St. Petersburg Planning and Economic Development Department)

29 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-28 Fiscal Year 2015 The following charts provide demographic and household data and comparisons: Demographics Population St. Petersburg 249,704 1 Pinellas County 926,610 1 Tampa-St. Petersburg-Clearwater MSA 2,850,394 St. Petersburg Median Age Female 52.3% 2 Male 47.7% 2 White 69.4% 2 African-American 23.9% 2 Hispanic 6.7% 2 Asian 3.2% 2 Total Households 104,431 2 Average Household Income $62,365 2 Average Household Size High School Graduate or Higher 87.8% 2 Bachelor's Degree or Higher 28.1% 2 Married 38.7% 2 MSA STATE Employees engaged in Manufacturing 6.22% % % 3 Employees engaged in Health Services 21.57% % % 3 Employees engaged in Financial Services 13.88% % % 3 Unemployment Rate 6.4% 4 6.8% 4 6.7% 4 1 Source: Bureau of Economic and Business Research, University of Florida, 2013 Data; 2 Source: 2012 American Community Survey, 5 Year Estimates, US Census Bureau; 3 Source: EQUI Database, City of St. Petersburg Economic Development Division, 2012 Data; 4 Source: Bureau of Labor Statistics, August 2014, Data;

30 City of St. Petersburg FY15 Adopted Fiscal Plan Fiscal Year 2015 A-29 Executive Summary CIVIC, CULTURAL & RECREATIONAL Major Annual Civic Events: Martin Luther King Jr. Celebrations (January) Festival of States (March-April) The Grand Prix of St. Petersburg (March) Green Thumb Festival (April) Mainsail Art Festival (April) St. Petersburg Pride Parade (June) Fourth of July Celebration (July) Arts Alive! Museum Day (September) Saturday Morning Market (open October May) Orchestra in the Park (October) St. Petersburg International Folk Fair Festival (November) Ribfest (November) Snowfest/Santa Parade (December) First Night (New Year s Eve) Blue Ocean Film Festival Museums: St. Petersburg Museum of Fine Arts The Dali Museum St. Petersburg Museum of History Dr. Carter G. Woodson African American Museum Great Explorations Children s Museum Florida Holocaust Museum Morean Arts Center/Chihuly Collection Cultural Organizations and Venues: St. Petersburg Arts Alliance The Arts Association of St. Petersburg The Florida Orchestra American Stage Theater Company freefall Theater Mahaffey Theater Palladium Theater The Coliseum Sunken Gardens St. Petersburg City Theatre St. Petersburg Opera Company Warehouse Arts District Central Arts District Creative Clay A Simple Theater St. Petersburg Opera Institutions of Higher Learning: St. Petersburg College University of South Florida St. Petersburg Eckerd College Poynter Institute for Media Studies Stetson University College of Law Pinellas Technical Education Centers Pinellas County Job Corps

31 FY15 Adopted Fiscal Plan City of St. Petersburg Executive Summary A-30 Fiscal Year 2015 Recreational Facilities and Venues: Three Public Golf Courses A Municipal Marina/Port The Coliseum Clam Bayou Nature Preserve Boyd Hill Nature Preserve/Lake Maggiore Envir. Education Center Five free Public Beaches One Main Library with six Branch Libraries 137 city parks - (58 with playground equipment) 33 Soccer/Football Fields 66 Tennis Courts 42 Baseball/Softball Fields 16 Community, Adult and Neighborhood Centers Nine Municipal Pools (North Shore Pool open year-round) 21 Boat Ramps Six Dog Parks Two Skate Parks One Jai-alai Court Pinellas Trail/City Trails Network Dell Holmes Park and Splash Pad Outdoor Fitness Zones (four total with more underway) Spectator Sports: Major League Baseball Home of the Tampa Bay Rays Home of the National Association of Professional Baseball Leagues Spring Training 1914 to 2009 St. Petersburg International Baseball Tennis Home of Women s Tennis Association Hosted the World Group Finals of the Davis Cup Hosted first round of Davis Cup Home of the Historic St. Petersburg Tennis Center, Site of Chris Evert s First Professional Match Sailing St. Petersburg Yacht Club (established 1909) St. Petersburg Sailing Center Largest city Marina in Florida (648 slips) Host of Regatta Del Sol al Sol (annual St. Pete to Isla Mujeres, Mexico race) Competitive Running St. Anthony s Triathlon (April) Football Bitcoin St. Petersburg Bowl Under Armour All America Game East West Shrine Game Annual Mayor s Cup High School Football Classic Soccer (NASL) Home of the Tampa Bay Rowdies Racing (IndyCar) The Grand Prix of St. Petersburg (March)... /j ~ , I ~,\ r ~ \ - ~ -- I < \\ - I- ",.