Utility Advisory Board CITY OF PUNTA GORDA, FLORIDA FEBRUARY 26, 2018, 9:00 AM CITY COUNCIL CHAMBERS 326 W. MARION AVENUE PUNTA GORDA, FL 33950

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1 Utility Advisory Board CITY OF PUNTA GORDA, FLORIDA FEBRUARY 26, 2018, 9:00 AM CITY COUNCIL CHAMBERS 326 W. MARION AVENUE PUNTA GORDA, FL NOTE: Anyone wishing to address the Council on any agenda item may do so at the appropriate time during the meeting. Those who choose to speak must state their name for the record. Each person will be allowed to speak once on each subject up to a maximum of three minutes. I. CALL TO ORDER/ANNOUNCEMENTS II. III. IV. A. Roll Call B. Next Scheduled Meeting 1. March 26, 2018 CITIZENS COMMENTS ON AGENDA ITEMS ONLY APPROVAL OF MINUTES A. Review and approval of minutes from January 18, 2018 REPORTS A. City Council Action on Utilities Agenda: Utilities agenda presented to City Council for January. B. Utilities Operation Data: Review of water and wastewater flows for January C. Utilities Financial Report: Report of monthly and year end revenue and expenses for Utilities January (not available - will be ed) V. UNFINISHED BUSINESS VI. A. A.M.I. Installation Update NEW BUSINESS A. Election of officers - Chairman and Vice Chairman B. Long Range Financial Plan - Finance

2 VII. VIII. IX. STAFF COMMENTS COMMITTEE/BOARD COMMENTS CITIZENS' COMMENTS X. ADJOURNMENT At meetings in which public hearings are reviewed, any member of the audience who wishes to speak will be recognized and heard. All persons must be sworn in prior to offering testimony. Comments may be limited to three minutes. The following motion format is recommended for use by an advisory board/committee in a quasi-judicial proceeding: Based on the evidence and testimony presented at this Public Hearing for Item #, I find that this request (is/is not) consistent with the City of Punta Gorda Comprehensive Plan and move that we recommend to the City Council (approval/approval with conditions/denial) of this request. If any person decides to appeal any decision made by this Advisory Board/Committee with respect to any matter considered at the meeting or hearing, he or she may need a record of the proceedings, and for such purpose he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans with Disabilities Act and Florida Statute , the location of this public hearing is accessible to persons with disabilities. If you are a person with disability who needs any accommodation in order to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Interpreters for the hearing impaired (TTY ) or non-english speaking citizens, and any other special accommodations can be requested by contacting the Human Resources Manager/Non-Discrimination Coordinator whose address is 326 W. Marion Avenue, Punta Gorda, FL 33950, whose telephone number is (941) , and whose address is humres@pgorda.us; at least two (2) calendars days prior to the meeting.

3 UTILITY ADVISORY BOARD CITY OF PUNTA GORDA 2/26/2018 Print Approval of Minutes* Title: Review and approval of minutes from January 18, 2018 Funds: Recommended Action: Summary: Department/Division: EXHIBITS: 1. Minutes

4 : Bill Schindler, Chairman Thomas Dillon, Mike Dougherty, Thomas Feneran, James Hoffman, Christopher Pflaum Bil Tucker : Tom Jackson, Utilities Director Kristin Simeone, Financial Analyst Steve Adams, Utilities Engineering Manager A. Roll Call - Mr. Schindler introduced Mr. Dougherty, noting he was recently appointed to the Board. - Mr. Dougherty provided a brief review of his background and experience. B. Next Scheduled Meeting 1. February 26, There were none. A. Meeting of November 27, Mr. Pflaum MOVED, Mr. Hoffman SECONDED approval of the November 27, 2017 minutes. MOTION CARRIED UNANIMOUSLY. A. Utilities Operational Data: Review of Water and Wastewater Flows for November 2017 and December Mr. Tom Jackson, Utilities Director, displayed a graph of Shell Creek reservoir levels, as delineated in the agenda material, stating the problems surrounding recent cold weather would be addressed later in the meeting. He then drew members attention to the Utility Operational Data Report, as delineated in the agenda material, providing a detailed review of the monthly water and wastewater flows. - Mr. Feneran questioned the discrepancy between the daily reservoir level flows in November and December. - Mr. Jackson replied tremendous rainfall accounted for same. B. City Council Action on Utilities Agenda: Utilities Agenda Items Presented to City Council for November 2017 and December 2017

5 - Mr. Jackson stated staff provided a Capital Improvement Project (CIP) presentation to City Council on December 6, 2017, adding he would provide the same presentation to the Board. He announced recently completed utility infrastructure had been deeded to the City. He then reported the third party review of Phases One and Two of the Reverse Osmosis (RO) project was complete, explaining the third party approval process in detail. He concluded this step executed the agreement and enabled reimbursement of the City for half of the RO project expenses; however, Phase Two funding was yet to be determined. C. Utilities Financial Report: Report of Monthly and Year End Revenue and Expenses for Utilities - November 2017 and December Ms. Kristin Simeone, Financial Analyst, drew members attention to the October 2017 financials, as delineated in the agenda material, providing a detailed review of revenues and expenses through November 30, She noted she was unable to provide members with copies of the December 2017 financials as the City was experiencing a network-wide printing problem this date. - Mr. Pflaum pointed out a significant difference between budgeted and actual revenue for service outside City limits, inquiring as to development in that area. - Mr. Jackson replied Alligator Creek Mobile Home Park had recently connected to City utilities. - Ms. Simeone then displayed the December 2017 financials, providing an overview of same. She confirmed she would same to the Board. She then spoke at length regarding the disbursement of Southwest Florida Water Management District (SWFWMD) funds related to the RO project. - Discussion ensued regarding the RO project s construction costs. - Mr. Jackson reminded members City Council opted not to implement the previously approved four percent rate increase. - Mr. Schindler cautioned against surprising rate payers with an unexpected increase. - Ms. Simeone questioned members thoughts on the monthly financials revised format. - Messrs. Dougherty and Pflaum commented favorably on the new format. - Discussion ensued with regard to the monthly budget amendments. A. Reverse Osmosis Project Update: Review of Project Status - Mr. Steve Adams, Utilities Engineering Manager, provided a PowerPoint presentation on the status of the Shell Creek Water Treatment Plant (WTP) RO Addition project, as delineated in the agenda material, providing a detailed explanation of work completed - 2 -

6 to date and the next scheduled steps. He displayed aerial views of the project site, confirming he would provide copies to the Board. - Mr. Feneran questioned the blended water s anticipated availability date if the project was completed by July Mr. Adams replied production would be immediate once the RO plant was operational. - Mr. Pflaum questioned the anticipated level of total dissolved solids. - Mr. Adams replied the target was between 350 and 400 parts per million. - Mr. Dougherty asked staff to comment on the design of flows among the production well field, the existing plant and the RO plant. - Mr. Adams spoke at length with regard to the flow of water from its origin through the treatment process, explaining water from the RO plant would be blended with that from the surface water unit. He stated bidding for the RO WTP had begun and would last approximately 6 weeks, noting SWFMWD funding in the amount of $15.65 million was approved on December 12, He announced all permitting was in place. - Mr. Hoffman questioned whether the RO plant would remove arsenic. - Mr. Adams replied no discernible level of arsenic would remain after the treatment process. - Mr. Jackson explained arsenic did not exist in the production wells, giving an overview of the incidental creation of arsenic in the aquifer storage and recovery wells. He then provided an in-depth update on the Utilities Department s CIP program, including the Groundwater RO WTP, the Shell Creek Raw Water Pump Station improvements and the Jones Loop Road force main projects. - Mr. Pflaum inquired how close the City was to eliminating all septic systems. - Mr. Jackson responded the Utilities Department would bring same before the Board upon completion of a septic-to-sewer conversion study. - Mr. Jackson stated a number of recent water main breaks had kept Utilities Department crews busy, noting those breaks had prompted improvements to the lines which serviced Bayfront Health Punta Gorda. - Mr. Pflaum questioned if the hospital had contributed toward associated costs. - Mr. Jackson stated the details of payment were under development. He then noted main breaks were common in colder weather. - Mr. Hoffman requested a moment of silence for former member Steve Fabian. - Mr. Feneran noted he recently observed crews working on a water main break, commending staff on a job well done

7 - Mr. Dillon opined the City needed to improve its maintenance of traffic related to Utilities repair work. - Mr. Bill Harper provided Mr. Dougherty with a book on the history of the City s utility system. - Meeting Adjourned: 10:27 a.m. Mary Kelly, Recording Secretary Bill Schindler, Chairman - 4 -

8 UTILITY ADVISORY BOARD CITY OF PUNTA GORDA 2/26/2018 Print Reports* Title: Funds: Recommended Action: Summary: Department/Division: City Council Action on Utilities Agenda: Utilities agenda presented to City Council for January. EXHIBITS: 1. CCA

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10 UTILITY ADVISORY BOARD CITY OF PUNTA GORDA 2/26/2018 Print Reports* Title: Funds: Recommended Action: Summary: Department/Division: Utilities Operation Data: Review of water and wastewater flows for January EXHIBITS: 1. UTOP Data

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13 UTILITY ADVISORY BOARD CITY OF PUNTA GORDA 2/26/2018 Print New Business* Title: Funds: Recommended Action: Summary: Department/Division: Long Range Financial Plan - Finance EXHIBITS: 1. Long Range Financial Plan

14 Long Range Financial Plan FY 2018 FY 2022

15 Fiscal Forecasts

16 General Fund Forecast Assumptions Revenues Ad Valorem Millage rate ; 6% increase/yr Other revenues 0%-3% est. increases Use of $672,000 operating reserves in FY 2019 Use of capital outlay reserves in FY 2020 and 2022

17 General Fund Forecast Assumptions Expenditures Personnel (City-wide) Estimated increases: 3% merit, pensions 5%, health insurance 6%, workers compensation 10% Operating (City-wide) Estimated increases: Liability insurance 5% and all others 3%, except for: Operating (General Fund) Election expenses $35,000/yr, comprehensive plan studies per schedule

18 General Fund Forecast Assumptions Capital Outlay $753,000 annual funding per 5 yr capital outlay plan Transfers Drainage Program - $500,000 per year Paving Program - $459,000 per year Capital Projects - $155,000 per year CRA TIF Estimate 4% incr per year

19 General Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Change in Taxable Value of Property 7.4% 6% 6% 6% 6% Revenues: Ad Valorem Tax $8,847,000 $9,377,820 $9,940,490 $10,536,920 $11,169,135 Other Revenue 11,231,372 10,987,477 11,136,187 11,287,280 11,440,300 Use of Capital Outlay Reserve 534, , ,000 Use of Prior Year's Reserve 376, ,695 Total Revenues 20,989,827 21,036,992 21,433,677 21,824,200 22,837,435 Expenditures: Personnel Expenditures 13,681,151 14,177,709 14,698,768 15,242,730 15,810,776 Operating Expenditures 4,249,176 4,376,283 4,542,419 4,637,723 4,742,340 Capital Outlay 820, ,000 1,110, , ,000 Transfers for Tax Increment Financing 575, , , , ,669 Transfers for Capital Projects 690, , , , ,000 Transfers for Roads 459, , , , ,000 Transfers for Drainage 500, , , , ,000 Contingency 15,000 15,000 15,000 15,000 15,000 Total General Expenditures 20,989,827 21,036,992 22,102,107 22,409,250 23,328,785 Expenditures in Excess of Revenue $0 $0 ($668,430) ($585,050) ($491,350) Minimum Reserve (7.5% to 9.5%) $1,575,000 $1,683,000 $1,849,000 $2,017,000 $2,195,000

20 General Fund Revenues and Expenditures 24,000,000 22,000,000 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, ,000,000 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Use of Reserves Revenues Expenditures Shortfall

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22 General Fund Operating Reserve FY 2019 Estimated beginning reserves $3,113,500 Less use of reserves towards balancing FY ,700 Less FY % min. ending reserve 1,683,000 Estimated reserves available for allocation $ 758,800

23 General Fund Capital Outlay Reserve FY 2019 Estimated beginning reserves $ 0 Additional reserve funding in FY ,000 Less FY 2019 use for capital outlay -399,000 FY 2019 Estimated ending reserve $ 357,000 FY 2022 Estimated ending reserve $ 0

24 CRA Fund Forecast Assumptions Revenues TIF revenue 3% increases overall HCC Lease revenue fully leased with partial vacancy for ½ year Other leases and loan repayments per contracts Expenditures (other than City-wide) Debt Service per loan schedule HCC facilities maintenance - $45,000 annually Laishley Park amenities - $100,000 annually

25 CRA Fund Proforma Budget FY 2018 through Proforma FY 2022 Debt Service Division Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Assessed Property Valuation change 9.7% 3% 3% 3% 0% Tax Increment Financing (TIF) Revenue $1,708,253 $1,759,501 $1,812,286 $1,866,654 $1,866,654 CRA Lease Payments (Debt Service) 1,379,440 1,423,924 1,471,648 1,517,548 1,566,566 Revenues in Excess of Debt Svc 328, , , , ,088 Reserve - TIF for Debt Svc (Beg) 367, ,723 1,032,300 1,372,938 1,722,044 Reserve - TIF for Debt Svc (End) $696,723 $1,032,300 $1,372,938 $1,722,044 $2,022,132 Herald Court Operations Division Herald Court Revenues $263,158 $270,988 $268,502 $270,016 $272,089 Herald Court Operating Expenditures 179, , , , ,464 Revenues in Excess of Herald Ct Operations 83,548 83,411 72,718 65,769 61,625 Reserve - Herald Ct (Beg) 105, , , , ,535 Reserve - Herald Ct (End) $188,637 $272,048 $344,766 $410,535 $472,160 CRA Operations Division Other CRA Revenues $113,204 $113,147 $112,898 $112,858 $112,726 Other CRA Operating Expenditures 154, , , , ,000 Revenues in Excess (Shortfall) of Other Operations (40,796) (40,853) (41,102) (41,142) (41,274) Reserve - Other Operations (Beg) 341, , , , ,171 Reserve - Other Operations (End) $300,268 $259,415 $218,313 $177,171 $135,897

26 Utilities Fund Forecast Assumptions Revenues No rate increases; estimated 1% growth SWFWMD grant funding 50% of full RO project Water Impacts to cover partial debt service on RO Wastewater Impacts reimburse for Jones Loop project Expenses (other than City-wide) Personnel Add 1 F.T.E. GIS/Eng. Tech in Admin Operating Add l est. costs of RO per proj. engineer

27 Utilities Fund Forecast Assumptions Capital Outlay Plan & Capital Improvements Plan Capital Outlay $650,000 to $700,000 per yr R & R of Infrastructure $1.1 million annually Transfers for other projects identified in 5 yr plan Debt Service Per schedule for existing and new SRF loans Required 1 year payment reserve

28 Utilities OM&R Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues: Chg for Serv - Water $9,385,070 $9,478,921 $9,573,710 $9,669,447 $9,766,142 Chg for Serv - Sewer 7,100,140 7,171,142 7,242,853 7,315,282 7,388,435 Other Revenue 451,515 1,059,454 1,070,422 1,086, ,445 Total Revenues 16,936,725 17,709,517 17,886,985 18,071,148 17,897,022 Expenses: Operations 12,978,083 13,585,926 14,084,220 14,540,417 15,014,091 Renewal & Replacement of Infrastructure 1,120,000 1,120,000 1,120,000 1,120,000 1,120,000 Transfer for Capital Improvement Projects 6,190, , , ,000 Existing Debt Service 200, , , ,000 New Debt Service 415, , , , ,000 Transfer to SRF Fund-reserve incr(decr) 415, ,200 (375,000) Contribution to Pipeline Project 1,500,000 Total Expenses 21,319,683 18,125,126 16,534,220 16,720,417 17,094,091 Revenues in Excess (Shortfall) of Expenses (4,382,958) (415,609) 1,352,765 1,350, ,931 Operating Reserves-Beg 7,963,749 3,580,791 3,165,182 4,517,947 5,868,678 Operating Reserves-End $3,580,791 $3,165,182 $4,517,947 $5,868,678 $6,671,609

29 Utilities OM&R Fund Revenues and Expenditures $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Use of Reserves Revenues Expenditures Surplus

30 Sanitation Fund Forecast Assumptions Revenues $0.60 per yr rate increase for recycling Estimated 1% growth in single and multi-family revenues Financing of equipment in FY 2022 Expenses (other than City-wide) Operating Recycling cost increases per contract Capital Equipment replacement per 5 year plan Capital Outlay reserve depleted in FY 2020

31 Sanitation Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues: Chg for Serv - Refuse Collection $3,488,160 $3,600,294 $3,712,707 $3,825,402 $3,938,380 Other Revenue 24,375 24,375 21,375 21,375 21,375 Capital Lease/Purchase 525,000 Total Revenues 3,512,535 3,624,669 3,734,082 3,846,777 4,484,755 Expenses: Operations 3,278,752 3,423,089 3,607,040 3,796,615 3,992,034 Capital 39, , ,000 Carts 570,000 Debt Service 43,750 Total Expenses 3,887,752 3,423,089 4,357,040 3,796,615 4,560,784 Revenues in Excess (Shortfall) of Expenses (375,217) 201,580 (622,958) 50,162 (76,029) Operating Reserves-Beg 940, , , , ,889 Capital Outlay Reserves-Beg 300, , , Capital Outlay Reserves-End $400,000 $600,000 $0 $0 $0 Operating Reserves-End $465,105 $466,685 $443,727 $493,889 $417,860

32 Sanitation Fund Revenues and Expenditures $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Use of Reserves Revenues Expenditures Surplus

33 PGI Canal Maintenance Fund Forecast Assumptions Revenues $550 Assessment rate Seawall replacement reserves used for special projects identified in 5 year plan

34 PGI Canal Maint. Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Assessment Rate $550 $550 $550 $550 $550 Revenues: Operating Assessment $2,861,750 $2,861,750 $2,861,750 $2,861,750 $2,861,750 Other Revenue 10,400 11,600 12,100 10,600 8,400 Total Revenues 2,872,150 2,873,350 2,873,850 2,872,350 2,870,150 Expenditures: Operations 968, , ,855 1,004,910 1,041,470 Inlet Dredging 50,000 51,500 53,050 54,640 56,280 Seawalls, Caps and Stabilization 1,705,000 1,756,165 1,808,860 1,863,135 1,919,035 Capital 2, , ,000 0 Total Expenditures 2,726,475 2,773,900 2,871,765 3,172,685 3,016,785 Revenues in Excess (Shortfall) of Expenditures 145,675 99,450 2,085 (300,335) (146,635) Operating Reserves-Beg 574, , , , ,557 Reserve Seawall Replacement-Beg 345, , , ,000 0 Reserve Seawall Replacement-End $280,000 $250,000 $250,000 $0 $0 Operating Reserves-End $785,357 $914,807 $916,892 $866,557 $719,922

35 PGI Canal Maintenance Fund Revenues and Expenditures $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Use of Reserves Revenues Expenditures Surplus

36 BSI Canal Maintenance Fund Forecast Assumptions Revenues $460 Operating assessment rate $ 95 Dredging assessment rate Seawall replacement reserves used for special projects identified in 5 year plan

37 BSI Canal Maint. Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Operating Rate $460 $460 $460 $460 $460 Dredging Rate $95 $95 $95 $95 $95 Revenues: Operating Assessment $474,800 $474,800 $474,800 $474,800 $474,800 Dredging Assessment 97,950 97,950 97,950 97,950 97,950 Other Revenue 2,500 3,150 2,150 1,400 2,200 Total Revenues 575, , , , ,950 Expenditures: Operations 124, , ,777 98, ,079 Inlet Dredging 38,000 38,000 38,000 38,000 Seawalls, Caps and Stabilization 264, , , , ,000 Rim Dredging Proj Debt Service 86,700 86,700 86,700 86,700 86,700 Barge Access-Inlet Widening Proj 250,000 Total Expenditures 475, , , , ,779 Revenues in Excess (Shortfall) of Expenditures 99,908 35,562 (232,577) 39,463 39,171 Operating Reserves-Beg 101, , ,061 94, ,947 Reserve Seawall Replacement-Beg 90, , , Reserve Seawall Replacement-End $100,000 $135,000 $0 $0 $0 Operating Reserves-End $191,499 $192,061 $94,484 $133,947 $173,118

38 BSI Canal Maintenance Fund Revenues and Expenditures FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Revenues Expenditures Surplus

39 Laishley Park Marina Fund Forecast Assumptions Revenues 0%-1% estimated increases Grant revenue for portion of pump out boat Capital Equipment Replacement per 5 year plan

40 Laishley Park Marina Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues: Slip & Mooring Rentals $429,500 $431,040 $432,734 $434,597 $436,647 Intergovernmental Revenue 11,000 11,000 11,000 11,000 11,000 Other Revenue 24,150 24,500 24,500 24,850 24,850 Total Revenues 464, , , , ,497 Expenses: Laishley Park Marina Expenses 196, , , , ,579 Marina Park Contract Expenses 237, , , , ,733 Capital Outlay 6,000 6,000 6,000 6,000 6,000 Total Expenses 439, , , , ,312 Revenues in Excess (Shortfall) of Expenses 25,520 18,005 7,881 (2,158) (12,815) Operating Reserves-Beg 286, , , , ,242 Operating Reserves-End $312,514 $330,519 $338,400 $336,242 $323,427

41 Laishley Park Municipal Marina Fund Revenues and Expenditures $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Revenues Expenditures Surplus

42 Building Fund Forecast Assumptions Revenues Permit Revenues estimated $864,500 per yr Interest revenue based on average reserves Expenses (other than City-wide) Personnel 2 FTE positions est. to be added in FY 2019; will be reviewed Capital Equipment Replacement per 5 year plan

43 Building Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues: Permits, Fees & Spec.Assessments $921,250 $916,250 $916,250 $916,250 $916,250 Other Revenue 35,000 35,000 33,500 32,500 30,500 Total Revenues 956, , , , ,750 Expenses: Operations 878,081 1,041,548 1,079,383 1,118,741 1,159,691 Capital 26,500 25,000 Total Expenses 904,581 1,066,548 1,079,383 1,118,741 1,159,691 Revenues in Excess (Shortfall) of Expenses 51,669 (115,298) (129,633) (169,991) (212,941) Operating Reserves-Beg 1,147,724 1,199,393 1,084, , ,471 Operating Reserves-End $1,199,393 $1,084,095 $954,462 $784,471 $571,530

44 Building Fund Revenues and Expenditures $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Use of Reserves Revenues Expenditures

45 6 Cent Gas Tax Fund Forecast Assumptions Revenues 1% estimated increase tax revenue Contract revenues flat Expenditures Estimated 3% increase per year

46 6 Cent Gas Tax Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues: Local Option Gas Tax $592,000 $598,000 $604,000 $610,000 $616,000 Other Revenue 245, , , , ,645 Total Revenues 837, , , , ,645 Expenditures: Operating Expenditures 836, , , , ,965 Total Expenditures 836, , , , ,965 Revenues in Excess (Shortfall) of Expenditures 1,560 (17,770) (37,905) (59,215) (81,320) Operating Reserves-Beg 355, , , , ,015 Operating Reserves-End $356,905 $339,135 $301,230 $242,015 $160,695

47 6 Cents Gas Tax Fund Revenues and Expenditures $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Use of Reserves Revenues Expenditures Surplus

48 Additional 5 Cent Gas Tax Fund Forecast Assumptions Revenues 1% estimated increase tax revenue $459,000 transfer from General Fund Expenditures Paving Plan estimated increase approximately 0.5% increase per year

49 Add l 5 Cent Gas Tax Fund Proforma Budget FY 2018 through Proforma FY 2022 Budget Proforma Proforma Proforma Proforma FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues: Local Option Gas Tax $281,000 $284,000 $287,000 $290,000 $293,000 Transfer from General Fund Ad Valorem 459, , , , ,000 Total Revenues 740, , , , ,000 Expenditures: Paving 740, , , , ,000 Total Expenditures 740, , , , ,000 Revenues in Excess (Shortfall) of Expenditures 0 3,000 1,000 (1,000) (3,000) Operating Reserves-Beg 35,791 35,791 38,791 39,791 38,791 Operating Reserves-End $35,791 $38,791 $39,791 $38,791 $35,791

50 5 Cents Gas Tax Fund Revenues and Expenditures FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Budget Proforma Proforma Proforma Proforma Use of Reserves Revenues Expenditures Surplus

51 Financial Policies

52 Policy (Update) General Fund and all other funds, excluding the Utilities Fund, will establish an unassigned fund balance minimum of 8% (currently 7.5%) of total fund appropriations.

53 Budget Issues

54 General Fund Millage rate scenarios for FY 2019 LRFP fiscal forecast that can be considered: Use of Reserves EnhancedDrainage Services Effect on Millage Rate $672,000 Included $500,000 Maintain with use of reserves $0 $0 Increase $172,000 $0 Maintain $172,000 $250,000 Increase $172,000 $500,000 Increase 0.170

55 General Fund Discussion of effect by limiting ad valorem revenue increase to construction value only LRFPProforma Alternatives Use of Reserves Enhanced Drainage Services Effect on Millage Rate RetainFull Value of Increase (existing & new construction) LimitValue of Increase to New Construction Only $672,000 Included $500,000 with useof reserves $1,048,700 Included $500,000 with useof reserves Maintain Decrease

56 General Fund Areas of Consideration to Reduce Shortfall Areas of Consideration Range Reduction of Drainage Program $0 - $500,000 Reduction of Paving Program $0 - $459,000 Reduction of Aqua Consulting Contract and Marketing Costs Contract $0 -$81,000 Marketing/Operating $0 -$50,000 Reinstate 1% sales tax funding PD vehicles (FY ) $75,000 Use ofgrant for FY 2017 PD boat and delayed ROW dump truck $50,000 Fund major equipment from 1% sales tax-$1,150,000 over 4 yrs (fire ladder truck, road grader, front end loader) $287,000

57 General Fund Areas of Consideration to Reduce Shortfall (cont.) Areas of Consideration Freezeon merit-based employee salary increase (excludes Fire education increases per union contract) Defer implementation of pay and classification study Range $0 - $213,000 Amountnot included in current LRFP Eliminate estimated 3% operating increase hold flat $0 - $103,000 Defer Urban Design comprehensive plan studies $25,000 in FY 2019 Eliminate various programs and related staffingto be determined at a later date TBD

58 PGI Canal Maintenance Fund Estimations related to Hurricane Irma: Item of Estimation Range Total repair cost $30 million $40 million District s match to federal& state funding $4 million $5 million Increase to annual assessment (assumes 10 year financing/repayment plan) $75-$100 annually Staff will review proforma for opportunities to decrease annual operating costs by deferring regularly scheduled maintenance

59 BSI Canal Maintenance Fund Estimations related to Hurricane Irma: Item of Estimation Range Total repair cost $1.1 million $1.5 million District s match to federal& state funding $140 thousand $200 thousand Increase to annual assessment (assumes 5 year financing/repayment plan) $26-$40 annually Staff will review proforma for opportunities to decrease annual operating costs by deferring regularly scheduled maintenance and evaluate final financing needs from FY 2017 dredging project

60 Special Use Reserve Fund One of the City s strategic objectives is to consider how to allocate fund priorities. Opportunities include: Retain proceeds from Fishermen s Village sale ($3.5 million) until such time as legal challenge to sale is resolved. Appropriate on case by case basis as needed. Transfer $1,000,000 to General Fund reserves to achieve GFOA national standard of two months operating reserve. Set aside $750,000-$1,000,000 for Ponce Park rebuild. Reserve new FEMA receipts from Hurricane Irma (excluding seawalls and debris removal) for future hurricane needs

61 Utilities Fund Reverse Osmosis Plant Construction Awaiting bids for construction to determine total costs Fiscal forecast includes additional 50% grant funding for amount between $32.2 million and $40 million Other sources of funding (such as financing) may be needed if grant funding is not Septic to Sewer Master plan study

62 Sanitation Fund During the budget process, the following items will be reviewed and options developed for: Rates not adequate to fund future equipment replacement needs to avoid on-going financing Cost effectiveness of 10 year packer replacement schedule

63 Building Fund Fiscal forecast anticipated need for additional inspector in FY Building Official is recommending the additional staffing in FY 2018 Analysis and recommendation will be brought to Council Current fees are adequate to fund position

64 City-Wide Succession Planning Competitive market Retention and training of current staff Attracting qualified candidates Pay and Classification Study Under way; 3-4 months to complete Results and possible implementation plans will be brought to Council